The idea was to replace the limited partnership structures at venture firms with a much broader base of ordinary investors.

FORBES: Technology

So, the tax bill's writers added a provision saying any profit from the sale of a hedge fund, a private-equity firm or other investment partnership would be taxed at the higher rates that apply to ordinary income.

WSJ: Financiers Switch to GOP

This means that a partnership's entire pretax earnings go to shareholders, while at an ordinary corporation, federal, state and local governments skim off 40% and more of that earnings stream.

FORBES: Sweet consolation