The tax talk continues among the politicians.

The democrats say private equity greatly enriches a select few while the firms put a great deal of people out of work. The republicans say the problem isn't with private equity, but with the economy as a whole (including strict regulations such as the Sarbanes Oxley, which some believe drives dollars to the private side). For right now, there is no specific legislation on the table that would put into effect any taxes on private equity. Instead, it's a war of words.

In his industry's own defense, Douglas Lowenstein, president of the Private Equity Council, said, "Private equity investments directly and indirectly benefit tens of millions of Americans."

The House Financial Services Committee today began considering whether private equity funds should be subject to greater regulation and taxation.

“When a small number of individuals benefit from a particular deal in the tens and sometimes hundreds of millions of dollars, and concurrently workers are laid off, we have a situation which, it seems to me, [is] wrong,” said Committee Chairman Barney Frank, D-Mass., at a hearing today on “private equity’s effects on workers and firms.”

(Continue reading this story on InvestmentNews)

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