The outsize profits currently being made by private equity firms have drawn the scrutiny of the lawmakers who are looking to close a tax loophole that allows these firms to book certain profits as capital gains as opposed to income, which is taxed at a higher rate. But such a move wouldn't just hit big private equity firms, as VC firms, which have a similar structure, take advantage of the same loophole. Speaking at a recent industry conference, venture capitalist Dixon Doll blasted the private equity industry, saying that the huge egos of private equity bosses is what triggered this potential action. While private equity execs are clearly enjoying this current boom, public scrutiny may be a necessary byproduct of their job. After all, unlike venture capitalists, who deal in companies that most people have never heard of, private equity firms frequently take down the country's most well-known brands. Just Tuesday, the Hilton chain of hotels announced that it was selling itself to Blackstone, a move which is certain to garner quite a lot of press. It's not clear that any change in the tax code will ultimately occur, but if the party is ruined, it has less to do with the personalities in the private equity industry than it does the fact that any wildly successful industry is going to draw the attention of politicians.

Nisus Writer Pro is now available, after an extensive public beta test.