The Trump administration is targeting an effective tax-rate hike on hedge funds and some accounting firms as part of a broader overhaul of the USA tax system, Treasury Secretary Steve Mnuchin said Tuesday at an industry conference. President Trump has said that they should get taxed at a higher rate that counts that money as income. "But we're going to get this down to a very competitive level, and the exact number is less important".
At the Delivering Alpha conference presented by CNBC and Institutional Investor, Mnuchin reiterated that the White House wants to scrap state and local tax deductions. "Passing tax reform, which hasn't been done in 31 years, that's a win". The Trump administration has made completing a package of tax cuts a top priority, but the task is expected to be complicated by Democratic resistance and a divided Republican party.
Trump broke with Republican leaders last week when he agreed with Democrats to lift the debt ceiling, fund the government for three months and approve $15 billion in disaster aid for victims of Hurricane Harvey. Trump may seek more disaster aid Bipartisan bill would force Treasury to put Tubman on bill Judd Gregg: The complex path to tax simplification MORE is defending President Trump's Republican bonafides, which have been questioned after the president struck a fiscal deal with Democrats in Congress.
The favorable tax treatment would still be available to other types of companies "that create jobs", he said, though he did not offer details.
Mnuchin on Tuesday also said he recognizes that it's important to have good working relationships with both parties, noting that he met with House Speaker Paul Ryan Monday and that Ryan had also had dinner together.