Last night it was announced that the Administration and Congress had reached an agreement to extend the debt limit to 2013, avoid a U.S default, and begin to reduce the federal deficit.  This agreement likely will be voted on by the Senate and House over the next 36 hours and is comprised entirely of spending cuts. It does not include any proposals to increase taxes, including carried interest. 

However, the agreement does create a small bi-partisan, bi-cameral committee that will examine further ways to reduce the deficit -- including tax reform. Once the agreement is passed and the composition of this committee becomes clear, we will understand more regarding how the Committee could impact the venture and entrepreneurial communities.  We anticipate that all areas of tax reform will be on the table ultimately -- carried interest, capital gains, partnership and corporate tax structures will likely be addressed in the coming months. The NVCA plans to work with the Committee and to advocate for our long held position about the importance of  encouraging long-term investment. We will keep everyone up to date as developments occur.