Three tax proposals targeting the rich that the new Congress could revive

Democrats’ midterm wins have revived three tax proposals aimed at high earners: curbing the carried-interest break for private-equity and hedge-fund managers, tightening rules on large trusts, and limiting borrowing against stock. The measures had stalled under divided government but now have a clearer path as party leaders revisit pay-fors for their agenda. Carried interest, which taxes fund managers’ profit share at capital-gains rates rather than ordinary income, remains the highest-profile target. Large trusts and stock-backed lending are also in scope, with proponents arguing both let wealthy households defer or avoid tax. Watch whether incoming lawmakers fold these provisions into a broader revenue package and how industry lobbyists push back on timing and scope.