Democrats waiting anxiously for Sinema’s verdict on tax and climate deal

[mystery-ak]

Democrats waiting anxiously for Sinema’s verdict on tax and climate deal
by Alexander Bolton - 07/29/22 10:15 AM ET

Senate Democrats are walking on eggshells around Sen. Kyrsten Sinema (D-Ariz.), crossing their fingers that she will agree to support a sweeping tax reform and climate bill that Senate Majority Leader Charles Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.Va.) announced Wednesday. 

Sinema was left out of the last-stage negotiations between Manchin and Schumer, though she played a large role in crafting the prescription drug reform bill that will be included in a budget reconciliation package along with the tax and climate provisions. 

The Arizona senator, who played a central role in crafting the bipartisan infrastructure bill that became law last year as well as the recently passed gun safety legislation, declined to answer questions as she left the Capitol Thursday. 

Sinema has already expressed her support for setting a 15 percent corporate minimum tax for companies that earn more than $1 billion in profits, a centerpiece of the deal that would raise $313 billion. 

But the bigger question is whether she’ll agree to close the carried interest tax loophole that allows asset managers to pay only a 20 percent capital gains tax rate on income earned from managing profitable investments. Closing it would raise an estimated $14 billion over 10 years. 

Sinema last year opposed doing away with the carried interest tax loophole, and critics were quick to point out how much money in campaign contributions she accepts from people in the private equity industry. 

Carried interest language was taken out of a House-passed tax and climate bill last year to avoid provoking a “no” vote from Sinema.

The mystery over how Sinema will vote deepened Thursday when she didn’t attend a special Senate Democratic Caucus meeting where Schumer explained the deal. 

more
https://thehill.com/homenews/senate/3579387-democrats-waiting-anxiously-for-sinemas-verdict-on-tax-and-climate-deal/

[Kamaji]

The carried interest "loophole" is not a loophole, it's a standard feature of partnership taxation.  Furthermore, for investment partnerships that engage in short-term trading, most of the income coming through from the carried interest is short-term capital gains, which are taxed at ordinary rates, not the lower long-term capital gains rates.

[Cyber Liberty]

She will vote Aye on the money bill.  I'd make book on that, but nobody's going to cover that bet.

[catfish1957]

She will vote Aye on the money bill.  I'd make book on that, but nobody's going to cover that bet.

She's your senator.  You know better than us.

[Cyber Liberty]

She's your senator.  You know better than us.

I am afraid so, in this case.  She's a far Lefty.