Top House Democrats introduced legislation today that would more than double taxes on many managers of hedge funds, buyout firms and real-estate partnerships.

The legislation, sponsored by New York Representative Charles Rangel, chairman of the Ways and Means Committee, and Barney Frank of Massachusetts, head of the Financial Services Committee, among others, would tax the share of profits that managers receive in exchange for investment services at ordinary income-tax rates as high as 35 percent. Currently, that income is taxed at the lower 15 percent capital gains rate.

Check back for updates.  Also check Carried Interest Taxation, whose author was kind enough to have my staff pull me out of an important meeting to deliver the bad news.  I'll be flying to Washington, D.C. after I vote at the Glastonbury Festival.