Trump Tax Plan Drops 15% Rate for Hedge Funds, Partnerships
- Rate had been proposed for businesses’ ‘pass-through’ income
- Low rate would apply only to corporate income, economist says
Donald Trump Speaks About Tax Plan, U.S. Economy
This article is for subscribers only.
Republican presidential nominee Donald Trump has dropped a major tax cut for businesses organized as pass-through entities, including partnerships, from his tax overhaul proposals, according to the latest version of those plans.
The change will make Trump’s plan much less favorable for private-equity partners, hedge fund managers and others who receive income from partnerships, limited liability companies and S corporations. Such entities don’t pay income taxes themselves, but pass their earnings through to their owners, who are taxed at individual rates.