Levin said Ways and Means Chairman Charlie Rangel (D-N.Y.) will hold hearings next month on the issue.
“I expect that there will be a lot of lobbying, but what I ask everybody, including the lobbyists, to answer is: How do you justify this? Where’s the fairness? Where’s the equity?” Levin said. “I need to look straight in the eye of constituents.”
But lobbyists working the issue say that average constituents’ investments would be harmed by higher tax rates.
Among the lobbyists expected to attend today’s coalition meeting organized by Cantor are Ashley Miller from the U.S. Chamber of Commerce; Jeff DeBoer, CEO of the Real Estate Roundtable; Sam Geduldig and Steve Clark of Clark & Associates, whose clients include the chamber, Investment Company Institute and the American Bankers Association; and Dan Gans from Polaris Government Relations, among others.
“Cantor recognizes that of all the ideas that Democrats have had thus far — and some of them would have tremendous negative impacts on the economy as a whole — probably none would be more detrimental to the entire economy than to tax private equity retroactively,” Geduldig said. “It would do incredible damage to the investment community, the American economy and to the country. It would have collateral damage to middle-class investors, union employees who are invested in pension funds, and would have ripple effects across the entire spectrum of American investors. Cantor deserves tremendous credit for recognizing the potential fallout and organizing a proactive solution.”
Another lobbyist said that Cantor “is sort of cautious about what issues he gets involved in, but when he does, goes full bore. He’s legitimately concerned that if some of these proposals were to become a reality, they could have a crippling effect.”
DeBoer said he intends to attend today’s meeting to “hear what Mr. Cantor’s concerns are and the focus of the group.” He added that he wants to make sure Members fully understand what the proposals would do to the economy.