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Private Inequity: How a Powerful Industry Conquered the Tax System
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Private Inequity: How a Powerful Industry Conquered the Tax System

Jesse Drucker and Danny Hakim
The New York Times, 2021
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Editorial Rating

9

Qualities

  • Eye Opening
  • Concrete Examples
  • Hot Topic

Recommendation

Private equity always seems to win at the tax-avoidance game. That’s unsurprising for a sector that retains attorneys able to run circles around their counterparts at the understaffed US Internal Revenue Service, and that deploys a bevy of well-heeled lobbyists to quash government attempts to curb the industry’s questionable practices. In this eye-opening article, journalists Jesse Drucker and Danny Hakim report how changes in US tax law continue to redound to private equity’s advantage.

Take-Aways

  • Private equity’s ability to pay lower taxes stems in part from the nature of its compensation.
  • Private equity firms respond to legislative changes with new tax-avoidance tactics.
  • Authorities’ efforts to reform the taxation of private equity have failed.

About the Authors

Jesse Drucker and Danny Hakim are investigative reporters at The New York Times.

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