Last week I wrote about how Southern California has emerged as the second-biggest recipient of venture capital money.

Last week I wrote about how Southern California has emerged as the second-biggest recipient of venture capital money. (The Bay Area is No. 1) At the same time, our status as an entrepreneurial incubator stands to be seriously roughed up if Congress passes a bill that would more than double the tax on venture capital investment income. Some insiders believed any such bill appeared dead, at least this year.

Not so fast. Rep. Charles Rangel (D-NY) last Thursday introduced tax reform that included such a provision, which is called carried interest.

Funny. The day before the legislation was introduced, a report came out showing that in the third quarter Southern California got more VC deals than any time in the last six years. Furthermore, Southern California edged out New England for the No. 2 spot for the third straight quarter.

Thanks, Congressman. We won't count on seeing those good numbers for long.

Charles Crumpley is editor of the Business Journal. He can be reached at [e-mail].