What Will Happen To Capital Gains Tax Rates On Early Stage Investments?

Senator Obama has said that he will "eliminate all capital gains taxes on investments made in small and start-up businesses."  Suffice it to say, this would seemingly create a fair amount of excitement in the early stage and venture investment communities around the country, although it is still unclear how this would interplay with potential increases in the carried interest tax and the potential phase out and phase in of various other tax benefits and provisions.  The National Venture Capital Association recently released a new position paper on the carried interest tax, which can be found here.

Additional stories on Senator Obama's plan can be found at peHUB and earth2tech.