The nation's largest union group announced yesterday it will begin lobbying Congress to increase taxes on partners of hedge funds and private-equity firms, and will begin encouraging pension funds to limit investments privately. Representatives for the AFL-CIO cited concerns over a lack of transparency in the management of such funds, stating that firms' managers often pay a lower tax rate than many of the unions' workers. Opponents of the proposal counter that increasing the taxes for buyout firms could lead to a decrease in the investment of new business, stifling economic growth.
See "AFL-CIO Lobbies for Higher Taxes on Hedge Funds, Buyout Firms", Kim Chipman and Jesse Westbrook, Bloomberg News, August 8, 2007