Democrats reached a deal with Sen. Kyrsten Sinema (D-Ariz.) on Thursday, securing her commitment to vote for their climate and health care bill in exchange for making several changes to the legislation.
“We have agreed to remove the carried interest tax provision, protect advanced manufacturing, and boost our clean energy economy in the Senate’s budget reconciliation legislation. Subject to the Parliamentarian’s review, I’ll move forward,” Sinema said in a statement on Thursday.
Sinema objected to a provision in the bill that would have tightened a tax loophole associated with hedge fund managers and private equity executives. She also expressed concern about a 15% corporate minimum tax that’s included in the bill. Business groups had lobbied her heavily to oppose both measures.
Sinema said Thursday she would work with Demorats to reform the investor tax provision, known as carried interest, after the Inflation Reduction Act is signed into law.
“Following this effort, I look forward to working with Senator [Mark] Warner to enact carried interest tax reforms, protecting investments in America’s economy and encouraging continued growth while closing the most egregious loopholes that some abuse to avoid paying taxes.”
This is a developing story. Please check back for updates.