The VC Carried Interest Debate

I'm seriously unimpressed, the author's analysis is based entirely on wishful thinking, e.g. VCs "should pay their taxes just like everyone else".<p>Whatever makes him think VCs are going to take permanent cut in their income without reacting in one or more ways to mitigate it?<p>You can change the rules in the middle of the game, but to expect only one player to ignore that to his detriment is delusional.

This is a slightly tricky one because I do think there is potential for the tax change to negatively impact funding available for startups.<p>However, the impact should be minimal and I agree with Fred Wilson that carried interest fees are not really that fundamentally different from other types of fees and thus standard income tax levels make sense.