Arizona Democrat Sen. Kyrsten Sinema struck a bargain with her party on Thursday, in which she committed to voting for its climate and health care bill in a trade for adjusting the legislation along her guidelines.
“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. Subject to the Parliamentarian’s review, I’ll move forward,” Sinema said in a statement.
As the Washington Post reports, the tax Democrats agreed to drop targeted wealthy investors. Sinema’s legislative colleagues also made changes to a second provision that would impose a new minimum tax on corporations that currently pay nothing to the U.S. government.
Democrats also agreed to add an excise tax on companies’ stock buybacks as part of the deal, CNN reports.
“The agreement will include a new excise tax on stock buybacks that brings in far more revenue than the carried interest provision did, meaning the deficit reduction figure will remain at $300 billion,” a Democrat familiar with the agreement told the network.
Speaking of that carried interest provision, Sinema also said on Thursday that she would work with her party to reform it after the Inflation Reduction Act is signed into law:
“Following this effort, I look forward to working with [Virginia] Senator [Mark] Warner to enact carried interest tax reforms, protecting investments in America’s economy and encouraging continued growth while closing the most egregious loopholes that some abuse to avoid paying taxes.”
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