Trump Wants to Kill Carried Interest. Wall Street Will Fight to Keep It.
Published On Mar 8, 2025, 8:11 AM
The article discusses President Trump's renewed focus on eliminating the carried interest loophole, a tax provision that benefits private equity and venture capital firms by allowing them to pay a lower tax rate on profits. This potential change has prompted significant lobbying efforts from the private equity industry as they seek to protect their interests. If successful, it could impact the financial landscape and tax implications for asset managers.
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The private equity industry is mobilizing to protect the carried interest loophole, which could lead to increased lobbying-related investments in companies that could benefit from maintaining tax breaks or those aligned with the industry. However, uncertainty from potential tax reform poses risks to the sector.
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