Trump chief of staff says a cherished tax break of Wall Street’s ultrarich will be tackled in overhaul

President Donald Trump plans to address a tax break enjoyed by Wall Street’s hedge-fund elite, Reince Priebus, White House chief of staff, said Sunday morning.

“Carried interest is on the table,” he said on ABC’s “This Week with George Stephanopoulos.”

Guidelines for Trump’s tax plan were released Wednesday in a one-page summary, which didn’t specifically mention so-called carried interest, which he had vowed during his presidential campaign to end. Carried interest is the share of profits—typically 20%—that hedge-fund, private-equity and some other investment managers collect from clients on investments, and it is taxed at a long-term capital-gains rate of 23.8% compared with a rate of 39.6% assigned to ordinary income.

Read: Full text of Trump administration tax reform principles statement

Trump has vowed to close a loophole that he said allowed hedge funds to essentially enjoy a reduced tax rate. Trump said “hedge fund guys are getting away with murder” in an interview with “Face the Nation” about two years ago (watch the video below):


However, the Trump administration’s guidelines on taxes delivered at a news conference Wednesday afternoon by Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn, didn’t specifically address the issue of carried interest, which didn’t go unnoticed by the New York Times, nor Reuters, which published a story Thursday under the headline ’Fist bumps’ at hedge funds over Trump’s tax plan.

Priebus told the Stephanopoulos program that “that balloon is not going to stay [inflated] for very long,” referring to the apparent absence from the tax-principles statement of any follow-through on Trump’s campaign rhetoric regarding carried interest.

Trump’s chief of staff during didn’t offer any fresh details about how carried interest would be tackled nor the rate at which investment managers would be taxed but said the president intends to address the matter in his tax overhaul.

Trump’s tax plan, which intends to cut corporate interest rates to 15% from…

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