Mnuchin Warns Some Partnerships and LLCs Won't Get Tax Break
- Warren suggests pass-through plan is boon for ultra wealthy
- Treasury secretary says focused on small and medium entities
A man enters the Internal Revenue Service (IRS) building in Washington, D.C., U.S., on Friday, May 7, 2010.
Photographer: Andrew Harrer/BloombergTreasury Secretary Steven Mnuchin cautioned that not all businesses currently classified as pass-through entities would see their rates slashed to 15 percent under the White House’s tax plan -- an indication that hedge funds and other high-earning partnerships and limited liability companies might not get major breaks.
“I assure you we are not going to allow all pass-throughs to get that rate,” Mnuchin said during a hearing before the Senate Banking Committee in response to a question from Senator Elizabeth Warren. When pressed by Warren, he also said the restrictions on which firms would get the tax cut would apply to current pass-through entities as well as to businesses that adopt that structure in the future.