Question of the Week: How Freaked Out Are You About Obama’s Tax Plan?

November is fast approaching, so it should come as no surprise that President Obama’s proposal for “business tax reform” includes some elements sure to play well in Peoria.

The plan would slash the top corporate tax rate from 35% to 28%, but it would also stick it to “fat cats” by closing what some perceive as loopholes. This could give the proposal traction with the “99 percent” and voters who are still enraged about the Wall Street bailout.

As outlined by my colleague Bernard Vaughan, the plan includes three changes that could significantly affect private equity firms and their partners: reducing the deductibility of interest payments on debt; increasing the tax rate on LLCs and limited partnerships; and boosting the tax rate on carried interest (read: “stick it to PE pros like Republican Presidential candidate Mitt Romney!”).

Which brings us to this week’s Question of the Week:

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Image credit: Photo of President Obama by Kevin Lamarque, Reuters