On page A9 on the Los Angeles Times on February 2nd, Bill Perkins from Texas published an advertisement asking people of California this question.
Question #3: Why is Senator Max Baucus (D-MT) Proposing to use your money to bail out Kohlberg Kravis Roberts &CO, Carlyle, Blackstone and other private equity firms?
It’s YOUR MONEY!!!
“The list of industries being bailed out by Congress may soon grow to include an unlikely one: private equity firms. Senate Finance Committee Chairman Max Baucus included language in the tax portion of the proposed stimulus package that would allow companies to defer income taxes triggered when they repurchase their own troubled debt at a discount.”
-WSJ Jan 28,2009
As an employee employed by a company owned by a private equity firm, I would like to
encourage our senators from California to lobby against Senator Baucus’s (D-MT) proposal to subsidize the losses from private equity firms with our tax money.
If we allow the government to bailout the losses from private equity firms, then we should at least offer strings attached such as making sure employees from their companies are not being cut and laid off so we can stimulate the economy with their wages. If employees are not working and earning wages, then we have no economic stimulus because our economy is driven from consumer spending.
If we are insisting on corporate welfare, at least it should go to the bottom as well as the top.