Illustration: Lazaro Gamio/Axios

President Trump still wants to end the carried interest tax break, in which certain investment managers pay capital gains rates instead of higher ordinary income rates. But don't expect it to happen anytime soon, if at all.

Driving the news: He made the comments to Fox News host Steve Hilton, who noted that then-candidate Trump had once referred to the current system as "getting away with murder." But then things get fuzzy.

  • Trump told Hilton that he used carried interest as a "negotiating chip" during 2017 tax bill negotiations to get corporate rates down to 21%, saying it otherwise would have been "23 or 24%."
  • Gary Cohn, when still Trump's top economic advisor, told Axios that Trump was asking up until the last minute "if we could still get rid of it." So if Trump was using carried interest as a negotiating chip, no one told Trump.

Between the lines: Cohn at the time blamed lobbyist-driven GOP House members from blue states for the pushback, but said nothing about a tit-for-tat on corporate rates (which the GOP caucus seemed to be in agreement on).

  • Probably because the math isn't anywhere near comparable, with even Trump telling Fox that the carried interest change wouldn't generate "that much money" in new federal revenue.

The bottom line: The House is now controlled by Democrats, who are generally more supportive of this change than are Republicans. But there's no obvious mechanism for how it would now get passed. Trump had his chance, but "negotiated" it away.

Go deeper: What taxing "carried interest" means

Go deeper

Two officers shot in Louisville amid Breonna Taylor protests

Police officers stand guard during a protest in Louisville, Kentucky. Photo: Ben Hendren/Anadolu Agency via Getty Images

Louisville Metro Police Department said two officers were shot downtown in the Kentucky city late Wednesday, just hours after a grand jury announced an indictment in the Breonna Taylor case.

Driving the news: Metrosafe, the city's emergency services, said it received reports of a shooting at South Brook St. and Broadway Ave., near the area where protests were taking place. A police spokesperson told a press briefing the injuries of both officers were not life-threatening. One officer was "alert and stable" and the other was undergoing surgery, he said.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 31,778,331 — Total deaths: 974,436 — Total recoveries: 21,876,025Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 6,943,078 — Total deaths: 201,930 — Total recoveries: 2,670,256 — Total tests: 97,459,742Map.
  3. Health: CDC director says over 90% of Americans have not yet been exposed to coronavirus — Supply shortages continue to plague testing.
  4. Politics: Missouri Gov. Mike Parson tests positive for coronavirus — Poll says 51% of Republicans trust Trump on coronavirus more than the CDC.
  5. Technology: The tech solutions of 2020 may be sapping our resolve to beat the coronavirus
  6. Vaccines: Johnson & Johnson begins large phase 3 trial — The FDA plans to toughen standards.
  7. Sports: Less travel is causing the NBA to see better basketball.
  8. Future: America's halfway coronavirus response

Biden: Breonna Taylor indictment "does not answer" call for justice

Former Vice President Joe Biden. Photo: Leigh Vogel/Getty Images

Former Vice President Joe Biden on Wednesday condemned the grand jury indictment of a Louisville police officer who entered Breonna Taylor's home in March in a botched drug raid that led to her death, saying in a statement the decision "does not answer" for equal justice.

The big picture: Biden called for reforms to address police use of force and no-knock warrants, while demanding a ban on chokeholds. He added that people "have a right to peacefully protest, but violence is never acceptable."

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