TPMmuckraker on Blackstone/IRS arrangements

Today's Must Read
By Laura McGann - July 13, 2007, 10:20 AM

Unless Congress treads lightly on delicate private equity and buyout firms like The Blackstone Group, we could see an end to entrepreneurship as we know it, the Bush administration warned this week. But under current tax law it could take Blackstone a mere 15 years to get back all the taxes it paid -- plus pocketing an extra $200 million -- on the $4.75 billion it made from going public on June 22.

Call it triumph of the good will.

According to a story in New York Times, Blackstone will pay a tax bill of $553 million on its earnings from a going public, a nice deal in itself, but over time will get back $750 million.