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 many small business but also includes hedge funds. That sparked concerns that the tax plan could dramatically cut taxes for hedge funds.

Mnuchin said that the tax plan would not grant the lower business rates to “services companies.” That would include financial services companies, such as hedge funds.

He said manufacturing pass-through and other small businesses “that create real jobs” would get the lower rates.

Pressed for details, Mnuchin demurred.

“I know it’s incredibly important to everyone in the room but it’s not that important to the American people,” Mnuchin said.

That elicited an uncomfortable chuckle from the Delivering Alpha attendees, many of whom are financial professsionals involved with hedge funds.