Wanna know why Harry Reid has not brought hedge fund tax loophole up for a vote...

From "Wobbled by Wealth" in today's NYT
by Paul Krugman

The most conspicuous example of this influence right now is the way Senate Democrats are dithering over whether to close the hedge fund tax loophole — which allows executives at private equity firms and hedge funds to pay a tax rate of only 15 percent on most of their income.

Only a handful of very wealthy people benefit from this loophole, while closing the loophole would yield billions of dollars each year in revenue. Retrieving this revenue is a key ingredient in legislation approved by the House Ways and Means Committee to reform the alternative minimum tax, something that must be done to avoid a de facto tax increase for millions of middle-class Americans.

A handful of superwealthy hedge fund managers versus millions of middle-class Americans — it sounds like a no-brainer.

But as The Financial Times reports, “Key votes have been delayed and time bought after the investment industry hired some of Washington’s most prominent lobbyists to influence lawmakers and spread largesse through campaign donations.” It goes on to describe how Harry Reid, the Senate majority leader, was “toasted by industry lobbyists” (and serenaded by Barry Manilow) at a money-raising party for his special fund to help Democrats get elected next year.

http://www.nytimes.com/2007/11/05/opinion/05krugman.html?hp