WASHINGTON – A group of Democratic senators are calling onPresident Donald Trumpto push congressional Republicans to end a Wall Street tax break he has long had in his sights. Ina letter sent to Trumpon May 18 and first obtained by USA TODAY, ten Democratic senators highlighted the president'slongstanding interestin eliminating what's known as the "carried interest loophole." It's a tax break that allows venture capital, private equity andhedge fund managersto pay a lower tax rate for certain earnings than they would if it was taxed as regular income. Investment fund managers pay 23.8% tax oncarried interest, which is the profits they make from assets like stocks and bonds. Even though it makes up most of their earnings, it's currently treated as a return on investment rather than typical income, which is taxed at 37% for the country's top earners. Trump campaigned on eliminating the tax break in 2016,telling CBS Newsthat the financiers are "getting away with murder." "A lot of them, it's like they're paper pushers. They make a fortune, they pay no tax. It's ridiculous," he said at the time. But Trump couldn't get the change included in his 2017 economic legislation, the Tax Cuts and Jobs Act, amid anintense lobbying campaignfrom the industryand some GOP lawmakersto protect the break. Wall Street voices say the provision allows them to support more jobs andmakes them more competitivearound the world. Now that Republicans in Congress are craftinga new sweeping tax and spending package, Trump is againpushing congressional leadersto eliminate the carried interest advantage. In the initial version of the bill released on May 12, House lawmakersleft it out,meaning the loophole would survive. "It is clear that theprivate equity industry has fought hardto retain these extraordinary tax giveaways," the Democratic senators wrote in the letter to Trump. "What is less clear is whether you will allow your party to deviate from your commitments, bow to industry demands, and fail to close the loophole for a second time." The letter led by Sens. Elizabeth Warren of Massachusetts and Tammy Baldwin of Wisconsin was also signed by Sens. Chris Van Hollen, D-Maryland., Sheldon Whitehouse, D-Rhode Island, Jeff Merkley, D-Oregon, Ron Wyden, D-Oregon, Amy Klobuchar, D-Minnesota, Jack Reed, D-Rhode Island, Peter Welch, D-Vermont, and Bernie Sanders, I-Vermont. The senators wrote that the House's tax-writing committee "defied your wishes" by advancing legislation that doesn't eliminate the loophole. "So, Mr. President, will you get it done?" they asked. The letter prods at a rare point of overlap between Trump and some of the most progressive congressional Democrats and a break between the president and Republicans in Congress. In addition to leaving out the carried interest provision, lawmakers have not adopted Trump's proposal ofraising taxeson some of the wealthiest Americans to offset lost revenue from hisother tax cuts. This article originally appeared on USA TODAY:Democrats push Trump to end Wall Street tax break he has long targeted
