The Bush administration and several top lawmakers signaled that they may not support a push in Congress to increase taxes on buyout firms and hedge funds.

Eric Solomon, assistant Treasury secretary for tax policy, told the Senate Finance Committee yesterday that proposed legislation to increase the tax rate paid by some partners in hedge funds and private-equity firms would undermine the competitiveness of American businesses. The danger to U.S. competitiveness was a theme echoed by senators on the committee, including Democrat Charles Schumer of New York.

Meanwhile, the Epicurean Dealmaker continues to be uppity with me and my fellow titans of the alternative asset management business.  Here's what he posted yesterday from the alternate universe in which he must live after — AFTER! — the hearings were over :

I begin to despair of private equity's ability to do anything in public without stumbling over their own appendages. What kind of lobbying strategy are these yokels following? From the looks of it, they have not developed any sort of compelling public campaign at all, but seem to be just showing up on Capitol Hill in their expensive suits with their expensive lobbyists in order to dangle potential campaign contributions in front of the supposedly desperate and stupid members of Congress.