Trump Seeks End to Tax Breaks for Hedge Funds, Sports Owners

Former President Donald Trump is pushing to eliminate the carried interest tax loophole favored by private equity firms, which allows them to pay lower capital gains tax rates compared to ordinary income tax rates. During a recent meeting with Republican lawmakers, Trump outlined his tax priorities, including ending tax breaks for billionaire sports team owners, and proposed tax cuts aimed at benefiting middle-class Americans, such as no taxes on tips and Social Security benefits. This initiative reflects growing concerns over income inequality and aims to align Trump’s fiscal policies with advocates for tax fairness. Despite his previous attempts to abolish the loophole during his first term, the outcome remains uncertain due to potential pushback from GOP members and intense lobbying from the hedge fund industry. Trump’s proposals come as House Republicans seek budget agreements amid ongoing fiscal discussions, highlighting his continued influence within the party. The legislative path forward for these reforms is still unclear, as differences in strategy among Republican leaders may affect the inclusion of these proposals in upcoming legislation.