- A little-known provision in the tax code allows private equity managers and hedge fund speculators to treat their earnings not as income but as capital gains, allowing them to cut their tax burden by roughly half. But previous attempts to crack down on the practice failed as Wall Street whales like Blackstone's Steven Schwarzman compared an attack to the Nazi blitzkrieg.
President Donald Trump is mounting another effort to eliminate a controversial loophole that has long allowed Wall Street’s überwealthy to evade millions of dollars in taxes every year.
