Monday, July 25, 2011

Cantor's Role in Debt Talks: Hedge Funds

Cantor's role has been to protect hedge funds:
As the debt ceiling talks tick down to the Aug. 2 deadline, leading the opposition to any deal that includes higher taxes is the new tribune of rank and file House Republicans: Majority Leader Eric Cantor of Virginia.

It was Cantor who walked out of talks with Vice President Biden over White House demands for new revenue, who torpedoed an initial attempt by President Obama and Speaker John A. Boehner to reach a “grand bargain” and who was invited for last-ditch talks with Obama and Boehner that collapsed Friday night.

Cantor’s pivotal role marks a rapid rise to power for the 48-year-old from the Richmond suburbs. It also represents a major coup for sectors of the investment community that Cantor has been striving to assist for several years — on the same tax issues that have been at stake this month. And so far, Cantor has prevailed on those issues.

Among the White House’s top demands for new revenue are changes in the tax code affecting hedge funds, private equity firms and real estate partnerships, which would raise an estimated $20 billion over 10 years.

For the past four years, Cantor has taken the lead in the House on fighting the same changes. Read more at Washington Post