Fear of Taxation by Association

http://online.wsj.com/article/SB118411051694462654.html?mod=home_whats_news_us After getting caught flat-footed on Capitol Hill, private-equity and hedge-fund firms are going on the offensive to lobby against steep new taxes. But their nascent campaign to enlist other industries to join them is off to a bumpy start, as some players worry about being associated with such high-profile targets. --A proposed House bill would deem the profits, received by PE and hedge funds, as ordinary income, and tax them at rates as high as 35% --The proposed bill explicitly hits managers in PE, hedge funds, VC and real estate parternship, but steers clear of oil and gas ventures. --Not everyone who might be affected wants to pool their efforts. VC work independently. Public-employee pension funds are also steering clear of the fight, a big blow to the lobby effort. Mututal funds, investment firms, large banks,...are remaining on the sidelines. --Even a prominent target of the proposed bill hasn't been able to muster a united front.