In the current environment of fiscal constraint in which all government programs must be paid for, carried interest taxes remain highly vulnerable as pay-for options. Congress could choose to pass separate pieces of the larger tax extenders bill, using carried interest as a revenue raiser for certain provisions. Alternatively, carried interest could be used as a "pay for" in the future for other provisions. It is currently unclear as to the path Congress will take.

What is clear is that when the issue does arise again in a matter of days, weeks or months, we will continue to pursue legislative language that reflects the spirit of the current Senate bill -- language that offers a more meaningful tax differential for longer term investment. We believe that tax policy should continue to encourage this type of investment if we want to build jobs and foster innovation in the US. As always we will keep you abreast of major developments in this regard.