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U.S. Treasury looking at increase in master limited partnerships

WASHINGTON (Reuters) – The U.S. Treasury Department is looking into the increased use by companies of the master limited partnership as a business structure, a department spokesperson said on Monday.

“We at Treasury are looking into the effects of these transactions on future tax revenues,” the spokesperson said.

“Instances where the tax base may be eroded serve as a reminder of why we need Congress to enact business tax reform that broadens the tax base and lowers tax rates.”

The Treasury statement, sent in an email, came in answer to questions from Reuters following news that Kinder Morgan Inc, the biggest U.S. pipeline company, will consolidate into a single corporation, folding together its existing organization of several master limited partnerships (MLPs).

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