Hedge fund managers will lose the advantage of paying the lower capital gains tax rate on their income, Treasury Secretary Steve Mnuchin said Tuesday.

Speaking at CNBC’s Delivering Alpha conference, Mnuchin said the White House’s tax plan would end the carried interest loophole that allows some hedge fund managers to pay a much lower rate on income derived from gains to their funds.

“Hedge funds will not have the benefit of carried interest,” Mnuchin said.

Candidate Trump promised to end carried interest treatment for hedge fund managers gains. But the administration has also said it wanted to lower the rates paid by pass-through entities, a group that includes…