Capitalism or contrivance?

If you thought that private equity’s image in Washington couldn’t get worse, think again. The latest blow may come from the way Blackstone’s partners appear to be paying taxes on the sale of stock in the buyout firm. While Congress is debating whether to change taxes on partnerships and carried interest, the notion that sharp-elbowed private equity bigwigs are exploiting another tax loophole to avoid paying their dues to Uncle Sam is likely to make matters more difficult for the industry. A rep...