Wilbur Ross Says Trump Plans Higher Carried-Interest Taxes
- Says partnership plan won’t prevent taxing carried interest
- Trump supporter seeks to clarify candidates’ proposals
Wilbur Ross, chairman and chief executive officer of WL Ross Holding Corp., left, listens during a Bloomberg Television interview in New York on Oct. 20, 2015.
Photographer: John Taggart/BloombergInvestment managers would pay higher taxes on the “carried interest” that makes up much of their income under Donald Trump’s tax plan, said Wilbur Ross, the billionaire distressed-debt investor and Trump supporter.
Saying he wanted to clear up confusion over the Republican nominee’s plan, Ross said Trump would tax carried interest -- that is, the portion of an investment fund’s returns that are paid to investment managers -- as ordinary income. Moreover, Ross said, that plan will not be affected by another Trump proposal that offers a tax-rate cut to income from partnerships, the structure that many investment funds use.