The private equity rent extraction game continues

Congress threatened to tax carried interest as ordinary income. The threat had its intended effect of extracting rents from private equity in the form of millions in campaign contributions. So now Congress can take the proposal off the table.  After all, you can't expect to keep the money faucet flowing if you don't provide any return. But Congress doesn't want to turn the faucet off by removing the threat. So the move to tax publicly held "private" equity firms as corporations is still on the table. Here's the WaPo story with the details.