Trump carried interest

Lobbyists Kept it Alive. Yeah, I hated it,” he told Fox, responding to a question about his view of the benefit during his campaign. Trump ’s tax law curbed one part of the benefit.

Now, he says, he hasn’t given up on trying to end the practice. In an interview Sunday with Fox News, the commander in chief voiced his displeasure with the carried interest tax provision that allows a majority of private equity and hedge fund investors to have their profits be taxed at the capital gains rate of around , rather than the ordinary income tax rate, which can be as much as.

That income is treated as a long-term capital gain, which is taxed at a lower rate than ordinary. Trump campaigned against the so-called carried interest provision, which benefits hedge-fund and private-equity executives. The Republican tax-overhaul proposal doesn’t touch it. Carried interest is the portion of an investment fund’s returns that are paid to fund managers.

It’s treated as capital gains, meaning it’s currently eligible for a tax rate of 23. The top individual tax rate is 39. Trump’s tax law curbed one part of the benefit.

Experts explain that the tax code treats carried interest as it does for specific reasons, and while President Donald Trump has claimed it primarily is a boon for hedge fund managers, it’s more. Trump last May promised the carried interest loophole would be gone under his tax plan. The Hill reporte however, the tax-cut bill makes just a minor adjustment to the provision, amending it so the lower percent rate would only count for investments held for at least three years.

Not once or twice, but multiple times. He promised when he was elected it would be closed. The “carried-interest loophole” is a misunderstood and often misrepresented feature of U. To begin with, it isn’t a loophole at all: It is an intentionally designed feature of the tax code functioning as intended — it may be good or it may be ba but it is the way it is for a reason,.

Also known as profits interest. REGAN: So then you believe it should get a lower tax rate. The carried interest rule allows financial managers to pay a capital gains tax rate on their income instead of the higher income tax rate. The president strongly believes, and he ran on this, that carried interest is a loophole,” Cohn said at an event sponsored by Axios. While the president managed to get much of what he wanted in.

Trump said in a recent Fox News interview that he would still like to eliminate the carried interest tax break. According to the New York Times , Because. Under the current tax code, the percent in profits — or carried interest — these managers pocket is treated as a long-term capital gain and taxed at a rate of 23.

Trump said he would do away with it, but yet the new Republican tax plan doe.

These funds invest in a wide range of assets, including real estate, natural resources, publicly traded stocks and bonds, and private businesses. Trump seemed to indicate that at least real estate would be included in his plan, saying that carried interest is “one of the greatest provisions for people like me,” although it is impossible to know the extent of his use of carried interest without access to his detailed tax returns. Tony Sayegh on tax bill: Democrats missed a major opportunity. Economists say that the scant details Trump offered in his policy speech only made his proposals more confusing. The provision allows partners of private equity firms, hedge funds, and other companies to pay tax on their compensation at more favorable capital gains rates instead of ordinary income rates.

President Trump signed the GOP tax bill, which did not close the carried interest loophole. Driving the news: He made the comments to Fox News host Steve. Currently, the law treats the salary received by investment partners, such as venture capitalists.

The tax treatment of carried interest has been in the news lately, following remarks by presidential candidate Donald Trump calling for higher tax rates on hedge fund managers.