Manchin: Why no, I didn't consult with Sinema, but ...

[mystery-ak]

Manchin: Why no, I didn't consult with Sinema, but ...
Ed Morrissey Jul 28, 2022 12:01 PM ET

Looks like Axios got this right in its snap analysis of Kyrsten Sinema’s reaction to the reconciliation deal announced late yesterday between Joe Manchin and Chuck Schumer. No one bothered to consult Sinema on the deal, Manchin revealed a few minutes ago to CNN’s Manu Raju, and no one has heard from her yet, either. Manchin thinks she’ll go along, but he’s not going to budge if she continues objecting to one component of the deal:

https://twitter.com/mkraju/status/1552671850962059266

For those unfamiliar with the carried-interest tax issue, the proposal will change the way income from investments get taxed. At the moment, carried interest gets taxed at capital-gains rates, which are significantly lower than income-tax rates. Carried interest income usually gets derived from economy-boosting capital investments, which had been the reason for taxing it at the capital-gains rate. The deal that Manchin and Schumer just cut will make that no different than ordinary income for tax purposes:

    One of the tenets of the compromise is higher taxes on carried interest, which is a huge part of hedge fund managers’ pay but also applies to a performance fee for developers known as a “promote.” The senators’ plan would tax carried interest as ordinary income rather than as a capital gain, raising roughly $14 billion.

    Other beneficiaries of carried interest include private equity and venture capital firms. A promote is a financial interest in the long-term capital gain of a development. Critics have long argued that income that does not result from risk-taking, such as the 2 percent of assets under management that hedge funders typically collect.

    Manchin, citing inflation, has been balking at a package of climate change measures and tax increases, denying Senate Democrats the 50th vote they need to pass legislation without Republican support. In a statement, Manchin expressed support for eliminating the favorable tax treatment of carried interest, which is not a significant source of income in his state, West Virginia.

more
https://hotair.com/ed-morrissey/2022/07/28/manchin-why-no-i-didnt-consult-with-sinema-but-n485882

[IsailedawayfromFR]

At some point, Congress needs to explain why it needs more taxes, ie - how does more taxes on those having carried interest trsnslate into being good for the economy and country.

The BS of "paying their fair share" won't cut it as that does not create value, but destroys it.

Wantonly increasing taxes is no justification.

[Cyber Liberty]

LOL!  Sinema will vote for this with no changes.