The U.S. president told lawmakers he plans to end a special tax break on profits that venture capitalists, private equity and hedge funds earn on behalf of investors whose money they manage. The profits, called carried interest, are currently taxed as capital gains, which are lower than income tax rates. (Axios)

Talking point: Capital-gains tax typically covers profits on the sale of an asset. Carried interest, meanwhile, is effectively a fee for service—that is, for managing investments—and not strictly a profit on investments themselves. Getting rid of the tax break, which Trump suggested as part of a broader tax reform, could generate billions of dollars for the government. While the idea has support from lawmakers on both sides of the political aisle, Wall Street is expected to put up a fight. Both Trump and former president Joe Biden previously tried, unsuccessfully, to close the loophole.