The head of the largest private equity lobbying group in the US said the chances that Congress will this year increase the tax on carried interest are now "better than even," as regulators in Europe and emerging markets continue looking to the US for guidance on the issue.

Speaking at an annual conference for emerging market private equity firms co-hosted by the IFC and EMPEA, Doug Lowenstein of the Private Equity Council reacted to recent agreement among members of both political parties in the US House of Representaitves that returns made by private equity managers, which are currently taxed at the capital gains rate, should be taxed at the higher income tax rate.