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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
Bloomberg business news

Donald Trump Speaks About Tax Plan, U.S. Economy

Updated on

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.