GOP bill cuts social spending—but popular tax break for hedge funds survives

When Republicans passed Donald Trump’s “big, beautiful” tax bill on Thursday, they included provisions to partially offset the costs, including significant cuts to Medicaid and food stamps. One area lawmakers didn’t touch: the so-called carried interest loophole that offers beneficial tax treatment to wealthy private equity, venture capital and hedge fund managers.

The carried interest loophole refers to a provision in the U.S. tax code that allows investment fund managers, like private equity executives...