Venture capitalists, who pay themselves by taking a cut of the investment gains they’ve earned for their investors, typically pay about 15% in federal taxes though the capital gains tax.But the tax rate for VCs could soon shoot up to around 37%, reports Andrew Ross Sorkin of the New York Times.
The new rule could net the government more than $25 billion in new revenues, says Andrew. (Of course, that’s only if VCs and other private equity managers, such as hedge fund operators, don’t figure out a way around the new tax.)
Business Insider Emails & Alerts
Site highlights each day to your inbox.