Tags: Trump | Target | Carried | Interest | Tax | Loophole

Trump Could Target 'Carried Interest' Tax Loophole: Official

Trump Could Target 'Carried Interest' Tax Loophole: Official
(Dollar Photo Club)

Monday, 01 May 2017 07:24 AM

The Trump administration's push to overhaul tax laws might soon target a loophole used by some financial managers to lower their tax rates, White House Chief of Staff Reince Priebus said.

President Donald Trump campaigned before the Nov. 8 election to eliminate the so-called "carried interest" loophole, which is used by many financial managers to lower tax obligations. But a rough outline for a major tax overhaul released last week failed to mention the loophole.

Priebus, however, hinted that carried-interest could be on the chopping block and warned against analysts taking the view that financial managers would keep on benefiting from it.

"That balloon is going to get popped pretty quick," Priebus told ABC's "This Week."

"Carried interest is on the table," he said. "The president wants to get rid of carried interest so that balloon is not going to stay inflated very long, I assure you of that."

The carried interest rule allows financial managers at private equity, hedge fund and other firms to pay a capital gains tax rate on their income instead of the higher income tax rate.

Trump's tax overhaul plan would slash rates for businesses. Vice President Mike Pence told NBC "Meet the Press" on Sunday the plan might widen budget deficits "in the short term," but faster economic growth would eventually lead to higher revenue.

© 2020 Thomson/Reuters. All rights reserved.


   
1Like our page
2Share
Personal-Finance
The Trump administration's push to overhaul tax laws might soon target a loophole used by some financial managers to lower their tax rates, White House Chief of Staff Reince Priebus said.
Trump, Target, Carried, Interest, Tax, Loophole
221
2017-24-01
Monday, 01 May 2017 07:24 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved