President Donald Trump supporters are disappointed the GOP tax-cut package failed to eliminate a key deduction Trump had promised to kill, The Hill reported Monday.
Trump ally and political commentator Ann Coulter blasted Trump for the inclusion of the carried interest provision used by wealthy investment firms, according to The Hill.
"For Trump to promise to end it everywhere he went, and then back down, is a very bad look," she said, according to The Hill. "Tax rates ought to at least have some bare minimum perception of fairness."
Fox Business Network host Trish Regan also criticized the tax plan, calling out the president for preserving the carried interest loophole for "private equity fat cats."
According to The Hill, current tax law provides that private equity, real estate, and hedge fund managers pay a rate of roughly 24 percent on the money they earn from successful investments, instead of the roughly 40 percent top income tax rate — even if their total income would put them in the top tax bracket.
Trump last May promised the "carried interest loophole" would be "gone" under his tax plan.
The Hill reported, however, the tax-cut bill makes just a minor adjustment to the provision, amending it so the lower 24 percent rate would only count for investments held for at least three years.
That would allow private equity fund and real estate investment managers to file their earnings from interest at a lower rate, but exclude most hedge funds.
The Washington Post reported Thursday a group of lobbying firms representing fund managers had been meeting for months to rally enough lawmakers behind the carried interest deduction to save it.
Meanwhile, GOP leaders have sought to defend the provision.
"Carried interest, we can talk about that for the next hour if you like, but for most Americans, they could care less about that," House Ways and Means Committee Chairman Kevin Brady, R-Texas, told MSNBC's "Morning Joe."
"They care about their paychecks and getting the economy going. I think this is the perfect issue, the disconnect between Washington, New York, and the American people."
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