Why Trump Wants to End the Carried Interest Loophole: QuickTake

One of the most controversial loopholes in a tax code full of them is under threat again.

During a meeting on Feb. 6, President Donald Trump told Republican lawmakers that he is prioritizing ending a tax break popular among investment fund managers. The same day, a group of more than a dozen Senate Democrats also reintroduced legislation to end the tax break.

While the average American worker must pay the standard tax rate on their income, wealthy private equity managers and venture capitalists are able to pay a lower capital gains rate on one of their main forms of compensation. ...