A Tax Loophole for the Rich, a Real Estate Bubble for Everyone
The Feb. 19 front-page article "Another wave of real estate distress" described the glut of commercial real estate and indicated that "there will be significant bankruptcies among developers and significant failures among community banks." An Economy & Business article the next day, "Plan to boost tax on 'carried interest' stalls in Senate," described the Senate's lack of will to tax the profits of huge hedge funds, private equity, venture capital and real estate investment firms. The most vocal opponents of the tax are commercial real estate developers, who say raising taxes would "discourage investment in real estate at a time when the economy needs it most." The article further stated, "One of the incentives of investing in real estate is the capital-gains treatment."