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Wealth
Taxes

Rich Wall Streeters Face Shock Tax Hike While Rest of Wealthy Escape

  • Proposed levies on rich would have cost trillions of dollars
  • Democrats still looking to raise taxes over the long term
Traders work on the floor of the New York Stock Exchange.

Traders work on the floor of the New York Stock Exchange.

Photographer: Michael Nagle/Bloomberg

Wealthy Americans, who were girding for the biggest set of tax increases in three decades just a year ago, now look mostly safe from higher levies for years to come.

But there’s one big, glaring exception: investment fund managers. If Democrats succeed in passing Wednesday’s surprise fiscal deal between Senate Majority Leader Chuck Schumer and Senator Joe Manchin of West Virginia, the carried interest tax break will end -- eliminating a benefit used by private equity and hedge fund managers.