Not exact matches
• Carrying interest water: Both Hillary Clinton and Donald Trump have
proposed tax plans that would include carried interest being reclassified as
ordinary income.
Trump
proposed changing the individual
tax rate structure to one of just three brackets on
ordinary income of 12 %, 25 % and 33 %.
The day after the Journal story appeared, Senators Max Baucus and Chuck Grassley
proposed legislation that would subject private - equity partnerships like Blackstone, whose earnings had been
taxed at the lower rate of «passive
income,» to
ordinary corporate
income taxes.
Essentially, in certain circumstances, this
proposed measure will limit the
tax deferral advantage available on «new» (i.e. post 2018) ABI to the difference between the personal
tax rate on
ordinary income and the
tax rate on ABI earned in a corporation that is not eligible for the SBD rate.
Under
proposed legislation, it would be
taxed as
ordinary income, which could drive up the rate to as high as 35 %.