Sen. Kyrsten Sinema has reached a deal with Democrats on a revised version of the climate, health care and spending package, the Arizona Democrat announced Thursday after more than a week of silence.
“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,” Sinema said in a statement. “Subject to the Parliamentarian’s review, I’ll move forward.”
All eyes have been on Sinema this week after Sen. Joe Manchin of West Virginia in a major reversal last week struck a deal with Senate Majority Leader Chuck Schumer that revived the legislation with massive implications for the Biden administration’s agenda and Democrats’ midterm push in November.
Sinema’s opposition to the carried interest loophole – which allows investment managers to pay a lower tax rate on their income – was expected. Sinema said on Thursday that she “looks forward” to working on carried interest tax reforms to protect “investments in America’s economy” and encourage “continued growth” while closing what she called the “most egregious loopholes that some abuse to avoid paying taxes.”
Schumer said in a statement that he believes the agreement will win the support of all Senate Democrats. The final version of the bill will be introduced on Saturday, when the Senate is scheduled to return to the Capitol for a rare weekend session to begin the voting process before breaking for August recess.