Tax Hike on Carried Interest Imperils Real Estate Investment and Threatens Economic Recovery

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May 20, 2010, 05:12 ET

Largest Real Estate Tax Increase in 20 Years Will Derail Job Creation Efforts

WASHINGTON, May 20 /PRNewswire-USNewswire/ -- A dramatic, permanent tax increase proposal on real estate "carried interest" threatens the fragile economic recovery and constitutes the largest tax increase on the real estate sector in more than 20 years. This new tax, under consideration in the House of Representatives this week, would affect more than one million real estate investment partnerships across the country and hinder job creation efforts in the private sector, The Real Estate Roundtable stated today.

"This is a sea change in the way real estate is taxed. This tax increase could not come at a worse time. A 150 percent tax increase on carried interest will create more difficulties in the struggling real estate sector and dramatically delay economic recovery. This is not a hedge fund tax increase. It is the largest tax increase on real estate, ever," said Roundtable President and CEO Jeffrey DeBoer.

"Make no mistake – this gigantic tax increase is a direct hit on more than one million real estate partnerships in the country, both large and small. It hits even harder, affecting both past and future investments. That means less investment, fewer projects and a greater loss of jobs in the private sector," DeBoer added.

"We are disappointed with this proposal in the House and urge that it be rejected. We are ready to continue working with policymakers in both the House and Senate on a more reasonable public policy approach, focused on economic recovery through job creation and responsible, private sector investment" DeBoer said.

www.rer.org

SOURCE Real Estate Roundtable