(Updates with Trump, Clinton campaign statements, adds details)
By David Morgan
WASHINGTON Oct 11 U.S. Republican presidential
nominee Donald Trump reiterated his promise in Sunday's debate
to kill the "carried interest" tax loophole that benefits hedge
fund managers and others - but his tax plan offers other goodies
for Wall Street, a nonpartisan tax research group said on
Trump and Democratic rival Hillary Clinton's tax plans
differ like mirror images, especially when it comes to how they
treat investment fund managers and other wealthy Americans,
according to separate reports by the Tax Policy Center.
Trump's tax plan would reduce federal tax revenues by $6.2
trillion over a decade, with about three-quarters of the
decrease coming from lower business taxes, the center said.
Those with incomes in the top 0.1 percent would see an average
tax cut of nearly $1.1 million.
Clinton would raise revenue by $1.4 trillion almost entirely
through higher taxes on the wealthy, including a 4 percent
surcharge on those with incomes of more than $5 million.
The Clinton campaign said the analysis showed she would
require "the wealthy, Wall Street and large corporations to pay
their fair share."
The Trump campaign denounced it as "a fraudulent analysis"
plagued by software problems.
The Wall Street carried interest loophole allows financial
managers at private equity, hedge fund and other qualifying
firms to pay a capital gains tax rate on their income instead of
the higher income tax rate.
Clinton would close the loophole with no compensating
benefits for those hit, the center said.
Under Trump's proposal, the center said hedge funds and
private equity partnerships would qualify for a special 15
percent business tax rate, depending on their size, the center
said. That would be well below Trump's proposed top income tax
rate of 33 percent and less than the 23.8 percent rate that
funds now pay under carried interest rules.
"Literally, he is getting rid of carried interest," said
Eric Toder, co-director of the center, which is a collaboration
of the Urban Institute and the Brookings Institution.
"The question is what else is there in the plan that affects
hedge funds, and the reduction in the business income tax rate
to 15 percent gives them a much better deal," Toder said.
Large investment fund managers would lose any advantage
because the Trump plan would subject them to an additional 20
percent dividend tax, the center said. Analysts said Trump had
not said what constitutes a large business.
"Our plan has explicit safeguards to keep hedge funds from
abusing the business rate - it's Hillary who plans secret
benefits for Wall Street, not us," Trump national policy
director Stephen Miller said in a statement.
(Editing by Jonathan Oatis and Peter Cooney)