President Donald Trump has signaled his intention to eliminate the carried interest tax break, a decision that could have far-reaching implications for the financial sector and commercial real estate industry. During a recent meeting with Republican lawmakers, Trump outlined his tax priorities, placing the elimination of this long-standing loophole at the forefront of his agenda.

The carried interest provision, which allows investment fund managers to pay a lower capital gains tax rate on a significant portion of their income, has long been a contentious issue in American tax policy. Critics argue that it unfairly benefits wealthy fund managers at the expense of ordinary taxpayers, while supporters claim it incentivizes long-term investment and economic growth.

Trump's renewed focus on this issue comes as a shock to many observers, despite his previous attempts to address the loophole during his first term. But in the end, the 2017 Republican tax bill only modified the rules, extending the holding period required for preferential tax treatment from one year to three.