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INCOME TAXES
 6 Months Ended
Jun. 30, 2012
INCOME TAXES
12. INCOME TAXES

Blackstone’s effective tax rate was 30.5% and 25.8% for the three months ended June 30, 2012 and 2011, respectively, and 13.5% and 28.2% for the six months ended June 30, 2012 and 2011, respectively. Blackstone’s income tax provision was an expense of $41.3 million and an expense of $64.2 million for the three months ended June 30, 2012 and 2011, respectively, and an expense of $80.1 million and an expense of $103.0 million for the six months ended June 30, 2012 and 2011, respectively.

Blackstone’s effective tax rate for the three and six months ended June 30, 2012 and 2011 was substantially due to the following: (a) certain corporate subsidiaries are subject to federal, state, local and foreign income taxes as applicable and other subsidiaries are subject to New York City unincorporated business taxes, and (b) a portion of compensation charges are not deductible for tax purposes.