Private equity heard loud and clear when President Donald Trump told lawmakers to kill its favorite tax break — and the industry is not letting go without a fight.
An all out — and very expensive — lobbying effort is under way to shore up support among Republican allies more beholden to the president than traditional pro-business policy. As one finance lobbyist, granted anonymity to offer candid observations, said, “There is a willingness to take on some of the sacred cows.”
Presidents Barack Obama, Trump and Joe Biden have all unsuccessfully tried to close the so-called “carried interest loophole,” which taxes profits from certain investments at a significantly lower rate than ordinary income. Congressional Republicans have never sounded very eager to increase taxes on investments, and some influential lawmakers have already come to its defense. Others are keeping their cards close to their chest, including Rep. Jason Smith, chair of the House Ways and Means Committee. When asked if Smith has a position on carried interest, a spokesperson responded, “Nope.”