On the other hand, congressional members supporting the measure say that the tax increase is reasonable and necessary to reign in the rising breakdown of the middle class. Currently, managers at hedge funds, private equity firms, and partnerships -- who may make millions -- pay a lower tax rate than the average school teacher or police officer.
In response, came the lobbyists -- quite an army of them, too. Private Equity groups in particular have spent $5.5 million this year alone in Washington -- nearly four times what they spent last year. In the end, the the lobbyist dollars may have gained their traction; Senate Majority Leader Harry Reid (D-Nev) says that the measure likely won't pass this year, and many analysts doubt if it ever will.
Venture Capital image by Spierzchala [cc, 2.0]