Trump could target 'carried interest' tax
loophole: official
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[May 01, 2017]
WASHINGTON (Reuters) - 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 on Sunday.
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.
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President Donald Trump appears on stage at a rally in Harrisburg,
Pennsylvania, U.S. April 29, 2017. REUTERS/Carlo Allegri

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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