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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.
(Reporting by Jason Lange; Editing by Andrew Hay)
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