Sen. Kyrsten Sinema has reached an agreement 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 agreed to eliminate the carried interest tax provision, protect advanced manufacturing and advance our clean energy economy in the Senate budget reconciliation legislation,” Sinema said in a statement. “Subject to parliamentary review, I will 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 legislation with massive implications for the Biden administration’s agenda and the Democrats’ midterm push in November. .
Sinema’s opposition to the interest loophole, which allows investment managers to pay a lower tax rate on their income, was expected. Sinema said Thursday that he “looks forward” to working on interest tax reforms to protect “investments in the American economy” and foster “continued growth” while closing what he called the “most glaring loopholes that some abuse to avoid paying taxes”.
Schumer said in a statement that he believes the deal 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 adjourning in August.