Two New York state assemblymen plan to propose a bill that ups state taxes on fund managers to cancel out federal savings they get on carried interest, according to The New York Times. 

Fund managers generally get paid a 2 percent fee of the fund's total assets, plus 20 percent of profits that exceed targeted benchmarks, which is called "carried interest." The 2 percent fee is taxed as ordinary income, but the 20 percent carried interest is taxed as much lower capital gains. This treatment is often referred to as the "carried interest loophole" by detractors, who count Donald Trump, Jeb Bush and President Barack Obama among their ranks, according to the International Business Times.  

The bill, sponsored by Democrats Jeffrion L. Aubry and Sean Ryan, would raise taxes on carried interest by exactly the amount fund managers save on the federal level, said the Times. They believe the new tax would raise $3.7 billion a year if it went into effect. Massachusetts, New Jersey and Connecticut are proposing similar measures to keep fund managers from avoiding the tax by moving to a nearby state, said the Times.