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One of the Most Hated Tax Breaks in America Just Won't Die

  • Democratic candidates say carried interest break must go
  • Trump hates the break but Congress won’t budge to raise rate
An American flag flies on the U.S. Capitol Building.

An American flag flies on the U.S. Capitol Building.

Photographer: Alex Edelman/Bloomberg

One of private-equity and hedge-fund managers’ most prized tax breaks is again in politicians’ cross hairs, but Democrats would need to sweep the 2020 election if they want to pull the trigger to end the option.

President Donald Trump said in May that he wanted to increase taxes on carried interest, a major form of compensation for hedge-fund and private-equity managers. Several leading Democratic presidential candidates -- including former Vice President Joe Biden, and senators Bernie Sanders and Elizabeth Warren -- also have said they want to end the break.