- Sinema wants to nix an effort to tighten carried interest from the Manchin bill, according to Axios and Politico.
- She’s been known to harbor objections since last year on the tax measure that largely helps wealthy investors.
- Sinema has been mum on her views on the bill so far.
Sen. Kyrsten Sinema reportedly wants to knock out a provision in the $740 billion economic spending bill that benefits rich investors and hedge fund managers.
A spokesperson for Sinema did not immediately respond to a request for comment. Without her support, Senate Democrats can’t advance the package in the 50-50 Senate over GOP resistance. The party is employing a tactic known as budget reconciliation to avoid a GOP filibuster and pass the bill along party lines.
Sinema has been publicly mum regarding her views on the legislation so far. On Wednesday, she told reporters that she was “taking my time” going over the bill.
Eliminating carried interest is a goal that’s eluded both Republican and Democratic administrations for a decade. Carried interest is the percentage of profits that hedge-fund managers receive from lucrative investments.
But that compensation is taxed at a lower capital gains rate that maxes out at 23.8% and doesn’t face a higher income tax rate like most Americans pay on wages from their job. Critics argue it amounts to a huge gap in the tax code.
This story will be updated.