Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
In the survey, 66% of Democratic primary voters say they'd be enthusiastic or comfortable about Biden as their nominee to take on President Trump in the 2020 election. Just...Politicsread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
A new update to the Apple Watch called watchOS 6 will notify you if the environment you're in is too loud and could damage your hearing.Technologyread more
He reiterated as much last month but hinted that it's less certain what will happen to private equity, venture capital and real estate fund managers regarding the same loophole.
The issue has to do with something called carried interest, which is the manager's share of a fund's profit, typically around 20 percent a year. The lower capital gains tax rate applies to profit from investments held for more than one year.
But hedge fund managers aren't worried about losing this advantage. In fact, they currently receive very little benefit from the way their carried interest is taxed.
"It's of no benefit to them," said Robert Willens, an independent tax consultant, about the tax treatment of their carried interest. "They couldn't care less if the taxation of gains was changed."
Because of the way the tax rules are written, hedge funds pay taxes for most of their so-called carry at the higher rate used for ordinary income.
That's because they hold many of their positions for less than a year. In order to be taxed at the lower capital gains rate, as most private equity firms are, hedge funds would have to hold their positions for more than 12 months.
The difference in the tax rate for carried interest being treated as capital gains versus ordinary income is striking. Under the current rules, capital gains are taxed at a maximum of 23.8 percent, while ordinary income has a rate of 43.4 percent.
Mnuchin is scheduled to speak Tuesday at CNBC's Delivering Alpha conference in New York.
Another loophole is closing for hedge funds regardless of tax reform. The IRS has allowed hedge funds to grow their deferred income from offshore funds, tax-free, for decades. That rule expires next year, meaning hedge funds will have to fork over billions of dollars.
That loophole has them more concerned than anything related to carried interest.