The National Venture Capital Association took aim at Donald Trump’s plan to end the special tax treatment for carried interest, saying Monday the Republican presidential candidate misunderstood the role it played in the U.S. entrepreneurial ecosystem.

“Despite the populist uproar, carried interest has been an important feature of the tax code that properly aligns the long-term interests of investors and entrepreneurs to build great companies together, and is only realized after our country receives the benefit of greater economic activity,” NVCA President Bobby Franklin said in a statement.

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