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Seems like the idea of jacking up the tax rate on "carried interests" of hedge fund and private equity managers has died the death, at least for this session of Congress. Great news. The Wall Street Journal wonders what's next, though --

...Senate Majority Leader Harry Reid seems to have had a change of heart.... This is a little awkward for a party that has made income inequality a campaign staple. But the turnabout isn't so mysterious in an election season when Wall Street moneymen have made more than $6 million in political donations, with most going to Democrats, especially a certain Senator from New York. Hillary Clinton's main Presidential competitors, Barack Obama and John Edwards, were particularly dismayed yesterday at the bill's demise, as it happens. Though she'd endorsed the idea in the past, Mrs. Clinton was mum.

...The question is what happens if there are 57, or perhaps even 60, Senate Democrats in 2009. Somehow we doubt those Wall Street campaign checks will stop Mr. Reid then.

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