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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Peter van Steennis who wrote (150398)5/3/2011 1:32:56 PM
From: Dennis Roth2 Recommendations  Read Replies (1) of 206084
 
Credit Suisse on Proposal to Tax Pass Through Entities

Proposal to Tax Pass Through Entities Not
Likely to Gain Traction

Research Analysts
Yves Siegel, CFA
Joseph A. Siano, CFA
Elvira Scotto, CFA

Proposal to Tax Pass Through Entities: The National Association of
Publicly Traded Partnerships (the lobby group for MLPs) has informed its
members that the Obama Administration is working on a proposal to tax
pass-through entities. We checked with our DC Policy Group and they said
this is not new and it is too late for any proposal to gain traction in the near
term.

Our Key Takeaways:
1) Any tax reform is unlikely until 2013 and at this juncture still we view
taxation of MLPs as a low probability.
2) There are more pressing issues that have to be tackled. These are the
debt ceiling and then the budget.
3) After these two issues are tackled we are likely to be in the fall and all
attention will be focused on the 2012 election.

We See Headline Risk but No Substance at this Juncture:
To be clear,
this is not an issue that is being taken lightly by the MLP lobby group. They
continue to actively engage and inform Congress on the vital role that
energy MLPs provide in building and maintaining US infrastructure. This in
turn means US jobs.
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