President Trump shifted from private equity critic to champion due to an AI deal, with Blackstone committing over $25 billion for AI infrastructure. The Big Beautiful Budget Bill preserved the carried interest tax loophole, boosting private equity wealth. An executive order made it easier for private equity firms to raise money.

Private equity firms benefit from a lower tax rate on profits, known as carried interest, instead of the higher ordinary income rate. If they paid the higher rate, the U.S. could raise $13 billion over 10 years. Ending carried interest could help reduce taxes on tips for the working class.

The private equity industry argues that ending carried interest would hinder long-term investment and job creation. Globally, private equity firms have $1.2 trillion to spend and employ nearly 10% of the non-government workforce in the US. Critics highlight the harm private equity does to businesses and communities.

Books like “These Are the Plunderers” and “Bad Company” have exposed the negative impact of private equity. Author Josh Kosman has warned about their destructive practices since 2009. Despite criticisms, private equity remains a significant force in the economy, with strong lobbying power and vast financial resources. Private equity firms are known for cutting costs through layoffs and price hikes. Democrats have long wanted to end carried interest but Trump’s actions set no precedent. Blackstone bought AirTrunk for $16.1 billion and invested in the Potomac Energy Center to power data centers due to the need for more energy. KKR and Energy Capital Partners also made a $50 billion partnership for data center and power generation growth.

Read more at Yahoo Finance: The Art of Trump’s Private Equity Deal: Exclusive