(Bloomberg) Some partners in hedge funds, private-equity firms and other businesses organized as so-called pass-throughs would pay a 3.8 percent income tax under President Barack Obama’s 2017 budget request.

The proposal would extend a “net investment tax” for Medicare that’s been in place since 2013 to taxpayers who’ve been able to avoid it, according to Obama administration officials. The measure, which is projected to raise $271.7 billion over the next decade, would apply to limited partners who “materially participate” in the ventures.

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