President Domald Trump's PEU stacked White House did look out for its own in tax reform.
Key point: Trump's plan would tax pass-through entities at 15%, whereas they currently are taxed at individual rates. This basically makes the carried interest debate irrelevant.Apparently Trump and Mnuchin helped billionaire PEUs without mentioning their name or their preferred carried interest taxation. It's a Trump PEU tax-palooza. David Rubenstein and Stephen Schwarzman will be able to add to their personal billions with a Trump tax break!
Result: This is officially aimed at small businesses, but pass-through treatment also applies to a lot of hedge funds and real estate funds (e.g., ones structured as LLC's). Moreover, funds organized as limited partnerships likely would restructure to qualify as pass-through entities for tax purposes (or at least firms would be sure to raise the next one that way). In short, such fund managers could pay a flat 15% tax on all of their income, including annual management fees on which they currently pay individual rates.