Blackstone: Too Rich for Congress

The private-equity firm's IPO may have endangered the industry's big tax break

Joshua Lutz / Redux

Stephen A. Schwarzman is Chairman, CEO and Co-Founder of The Blackstone Group.

On June 22, shares in the private-equity firm Blackstone Group began trading publicly on the New York Stock Exchange. By late afternoon, CEO Stephen Schwarzman's 23% stake in the firm he co-founded was worth almost $9 billion; he also pocketed $700 million cash from the deal.

The same day, several high-ranking members of the House Ways and Means Committee introduced legislation to make Schwarzman and Blackstone pay a lot more in federal income taxes than they do now.

Coincidence? Naah. The astounding riches made public for the first time when Blackstone filed for its stock offering are a big reason this...

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