Mnuchin Says Hedge Funds Will Lose Lower Tax Rates

Katrina Barker
September 13, 2017

Democrats have also been deeply skeptical of the Trump administration's plans to repeal the estate tax, which it has said has been harmful to family farmers.

Mnuchin said on Tuesday that he hopes tax-reform legislation is bipartisan, but that Republicans are prepared to use reconciliation if a bill won't be able to get the 60 votes in the Senate needed to overcome a filibuster.

"We're going to get this done by the end of the year", Mnuchin said, adding that the administration is "super focused" on the goal following the three-month debt limit and government funding extension passed last week. Instead, Ryan said a number in the low-to-mid 20s is more realistic.

Hedgies typically have their income taxed at a lower "carried interest" rate, since it's considered a share of the company's profits.

While Trump is committed to a permanent tax overhaul, Mnuchin has at times appeared to be managing down those expectations.

The Treasury secretary said the administration still wanted the carried interest break to be available to "other entities that create jobs". "Passing tax reform, which hasn't been done in 31 years, that's a win". The top individual income tax rate is 39.6 percent, though Trump and congressional Republicans have proposed cutting it to 35 percent.

But the ex-banker said that one of Trump's campaign promises - changing how hedge funds pay Uncle Sam, and effectively making them pay more - is still on the table.

Asked for details, Mnuchin demurred, saying: "I know this issue is incredibly important to everybody in this room - it is less important to the American people".

Other reports by AllAboutTopnews

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