President Trump campaigned on a pledge to increase taxes on hedge fund and private equity fund managers, by closing the carried interest loophole. But there is no mention of carried interest in the tax plan released today by the White House. Instead, there is a plan to lower the tax rate on so-called "pass through" entities, which actually would reduce the tax burden on many of those same professional investors.
What are pass-through entities? Businesses that pay taxes at individual rates (up to nearly 40%), rather than at corporate rates (35%).
New plan: The White House wants pass-through entities to be taxed at corporate rates, which it hopes to slash down to 15%.