Richardson Bucks Dems on Carried Interest Tax

Presidential candidate Bill Richardson has broken ranks with his fellow Democrats, by opposing a change in tax treatment of carried interest for venture capital and private equity investors. He does, however, believe that such an increase should be imposed on hedge funds and publicly-traded partnerships.

Richardson’s campaign issued a statement that lauds Congressional Democrats for trying to do something about the looming AMT disaster, but says that VCs and PE pros should not be asked to help pick up the lost federal revenue. He claims that a change to carried interest tax treatment would “damage our economy as well as our capacity for innovation,” but he does not actually address why either of those things would happen. Richardson also doesn’t spend any real time on the buyout side of the equation, instead focusing most of his rhetorical effort on VCs.

You can read Richardson’s full statement here: RichardsonStatemenrt.pdf

All of the other major Democratic candidates are on record as supporting a change to carried interest tax treatment, from capital gains to ordinary income. All of the major Republicans favor maintaining the status quo.