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The GOP Tax Plan Basically Still Has A Provision Trump Said He'd Drop

The "carried interest loophole" lets some business people pay lower rates on taxes.
Posted at 4:20 PM, Dec 20, 2017

The House of Representatives just passed the GOP tax plan, but it basically still includes a controversial loophole politicians said they would close.

The "carried interest loophole" lets real estate investors and managers of private equity, venture capital and hedge funds pay a lower capital gains rate on taxes, rather than the higher rate on income.

President Donald Trump has repeatedly said he would get rid of that loophole, but that hasn't happened yet.

Instead, under the GOP's tax bill, people who want the benefit of the carried interest provision would have to hold their investment for at least three years.

Tax experts say that won't be a problem for beneficiaries. And one law expert told The New York Times it's a "home run for private equity investors."