Hedge funds wont receive the benefit of a carried
interest loophole under the tax reform that President Donald
Trump is pushing to get done by the end of this year, according
to Treasury Secretary Steven Mnuchin.
The president has been clear that for hedge funds they
will not have the benefit of carried interest, Mnuchin
said Tuesday morning at the seventh annual Delivering Alpha
conference, hosted by CNBC and Institutional Investor at the
Pierre Hotel in New York. We want to make sure that we
So-called carried interest, or the share of profits that
private-equity and hedge-fund firms earn from the investments
they make, is currently taxed at a lower rate than ordinary
income. Mnuchin addressed the loophole while on stage at the
conference, referring to tax reform more broadly as his
number one priority.
The Trump administration missed its original goal of
achieving tax reform in August.
Im incredibly hopeful well get this done
by the end of the year, Mnuchin said.
Mnuchin, who served as Trumps finance chairman during
his presidential campaign, was sworn in as the 77th Secretary
of the Treasury in February. He previously served as chief
executive officer of Dune Capital Management, the hedge fund
firm he co-founded in 2004.
[II Deep Dive:
The 2017 Pension Political Power 25: Steven Mnuchin]
Trump has been pushing to slash the federal corporate tax
rate currently as high as 35 percent to 15
percent. While he may not achieve that large of a reduction,
any tax reform would be a win for Trump as it
hasnt been done for about three decades, according to
We are super focused on tax reform now, he