Private Equity Faces Shock Tax Hike While Rest of Wealthy Escape

Wealthy Americans, who were girding for the biggest set of tax increases in three decades just a year ago, now look mostly safe from higher levies for years to come.

But there’s one big, glaring exception: investment fund managers. If Democrats succeed in passing Wednesday’s surprise fiscal deal between Senate Majority Leader Chuck Schumer and Senator Joe Manchin of West Virginia, the carried interest tax break will end -- eliminating a benefit used by private equity and hedge fund managers.

Only a few items from President Joe Biden’s set of ambitious, wide-ranging tax increases are still alive in the ...