HILL TAX BRIEFING: House Plan a ‘Big Deal’ for Private Equity

A proposal from House Ways and Means Democrats to limit a tax break favored by the private equity industry would be more restrictive than appeared at first glance, according to industry professionals.

The House plan doesn’t go as far as President Joe Biden’s plan to kill the carried interest tax break completely, something that drew criticism last week from Patriotic Millionaires and other advocates for higher taxes on the wealthy.

Instead House Democrats want to up the amount of time investment funds must hold their assets to five years—up from three—in order to qualify for preferential rates. The House ...