Trump Takes Aim at Private Equity’s Favorite Tax Perk Again

President Donald Trump is once again saying he wants to end a tax perk used by private equity fund managers, a policy feat that politicians have tried and failed to achieve for more than a decade.

Under threat: the tax code’s controversial treatment of the profits of private equity, venture capital and hedge fund managers. In the current regime, dealmakers pay a lower rate on their share of profits because these returns are taxed as capital gains instead of normal employment income.