The NYPost is reporting that Blackstone’s president, Tony James, is throwing a party at his house for Nancy Pelosi.
Their sources tell the Post that the party is meant to encourage Pelosi to vote against the proposed tax rate increase on carried interest, the profits people make on money they have invested.
Currently carried interest is taxed at 15%. The proposed tax rate for carried interest is the same as the income tax rate, 35%.
Raising taxes on carried interest so significantly would do serious damage to hedge funds and PE firms, like Blackstone, because it would deplete money managers’ yearly profits.
Then again, this could also just be an excuse to throw a swanky party. Carried interest hasn’t gotten very close to passing in the three times it’s been brought before congress. And the one time she did vote on the tax, Pelosi voted against it, so she probably doesn’t need to be swayed.