President Trump is keeping on his promises as the GOP tax-cut law passes through the GOP Congress. The President had promised people a reduction on the taxes during the Presidential campaign, which he delivered with the Tax Cuts and Jobs Act.
Although the package failed at eliminating, the important deductions that were used by the affluent investment firms that Trump had promised to finish for good. This is causing some anger and disappointment in the populist supporters of President Trump.
Ann Coutler, a Trump ally, raged on the President as he allowed the inclusion of the interest provisions.
“For Trump to promise to end it everywhere he went, and then back down, is a very bad look,” Coulter said in a tweet. “Tax rates ought to at least have some bare minimum perception of fairness.”
Another of such high profile lash back was received from a television host Trish Regan, who went on to slam the tax plan while airing his show, and later in a tweet, called Trump as he had preserved the carried interest loophole for the ‘private equity fat cats.’
The critics in the financial sector had been protesting against the carried interest deductions and went on to argue that the wealthy managers from the investment sectors were already being paid fat pay checks and would further receive tax deductions from the tax reform.
As per the new Tax law, the private equity, real estate, and the hedge fund managers are paying a rough rate of 24 percent on the money earned from all their successful investments instead of paying 40 percent in top income tax rates, even if they are in top tax bracket on the basis of their incomes.
The President had promised to end – as he liked to call – the “carried interest loophole” during his presidential campaign, saying that those who are benefiting from such provisions were “getting away with murder.”
The Tax-cut bill from the president, managed to make just a little change in the provision, amending it in order to lower the rate to count for three years of investments. This allows the private equity funds and the real estate investment managers to file their income at a lower interest rate while excluding all the hedge funds.
The White House’s chief economic adviser, Gary Cohn, on Wednesday, said that Trump and his administration “probably tried 25 times” to end the carried interest deductions. He said it in an event that was hosted by Axios.
Cohn is the former CEO of an investment bank called the Goldman Sachs and in his statement, he further said that the Trump was still pushing to remove the deduction as recent as on Monday, but was opposed by the Republican House members from the states that are more inclined towards the Democrats.