What now for changing tax provision?

As candidates, both Donald Trump and Hillary Clinton advocated raising the income tax rate on carried interest. For those not aware, this IRS provision allows hedge-fund employees to categorize most of their annual income as long-term capital gains instead of ordinary income, reducing the tax burden by as much as 50 percent. Unfortunately, it looks as though half of President Trump's cabinet nominations are individuals who benefit greatly from this tax provision. Hedge-fund managers are also big supporters of political candidates on both sides of the aisle. Not surprisingly, little has been said about eliminating the carried interest provision since the election.

Tim Hein

Palatine