The carried-interest loophole
The tax break every president promises to kill — and never does.
Carried interest lets hedge-fund and private-equity managers count their pay as investment gains, taxed at a lower rate than ordinary wages — lower than a nurse or a plumber pays.
Closing it would raise $13 billion a decade by the official score — up to $100 billion under broader designs. Trump promised to close it in 2016 and again in 2025. It survived both of his tax laws untouched.
When they tell you there's no money, check this line first. It's the cleanest test of who a budget is actually for.
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Every president promises to close the carried-interest loophole. The loophole has outlived every promise.
Receipts: CBO via PGPF · Yale Budget Lab