Saturday, August 6, 2022

Sinema Lulled by Private Equity and Venture Capital Contributions Ends Opposition When End of Carried Interest Is Removed


Politicians adhere to the Unruh Rule that money is the mothers’ milk of politics
Campaign contributions are popular sought crucifixes
The need for donors with deep pockets crosses the aisles
As necessary for nourishment as the annual flooding of the Nile
When on any bill, the lobbyists and PACS stalk
Principles and integrity in the other direction quickly walk
Kirsten Sinema was the only Horatio after Manchin after a promise of a pipeline to his state chose to fold
Now on the misnamed Inflation Reduction Bill will vote as by Schumer he is told
Sinema who is a favorite donee target of venture capital and private equity funds in opposition caved
When the ban of the costly loophole of the carried interest converting ordinary income to capital gains was sent to the grave
In the early days of venture capital when funds were 10 to 20 million in size
Management fees of less than 500 grand to run an office meant need for capital gain inducement to the right team comprise
Now with fund sizes in the multi millions a very wealthy salary for the VC’s to earn
Regardless of whether their funding limited partners earn a decent rate of return
Should have kept the loophole death sentence in
And thrown the idea of 80,000 more IRS agents into trash bin
For Manchin his payback of a pipeline to his state
With Red animosity and no reconciliation he will have a long time to wait
© August 6, 2022 The Alaskanpoet

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