The Congressional "Super Committee" is now in its final week of deliberations. Rumors are constantly swirling around Washington about what they are talking about. One rumor we have heard is that the Super Committee might consider hiking the capital gains tax rate paid by a wide range of investment partnerships, including partners and employees at private equity, venture capital and real estate firms.
The Taxpayer Protection Pledge commits signers to "oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses." This clearly precludes any hike in the capital gains tax rate.
ATR sent a letter urging the Super Committee to avoid this tax hike last month.