The Greenbook for Obama’s 2012 budget was just released
February 15, 2011Miscellaneous
The Administration just came out with its 2012 budget and as expected, the budget contains, again, a proposal to tax carried interest. The main difference from last year’s proposal is the change from “service partnership interest” (SPI) to “investment services partnership interest” (ISPI). In other words, while last year’s budget aimed at all services profits interest in partnerships, this year’s budget clearly addresses investment partnerships only. Just as last year, the new budget expressly discusses the anti-abuse rule that would subject “disqualified interest” to ordinary income rates. The Greenbook can be found at Treasury’s website here, and is also reproduced below.