Sinema reaches agreement with Democrats on reconciliation | Policy
Senator Kyrsten Sinema has reached an agreement with Democrats on a revised climate, health care and spending package, the Arizona Democrat announced Thursday after more than a week of silence.
“We have agreed to remove the deferred interest tax provision, protect advanced manufacturing, and boost our clean energy economy in Senate budget reconciliation legislation,” Sinema said in a statement. “Subject to parliamentary review, I will proceed.”
All eyes have been on Sinema this week after Sen. Joe Manchin of West Virginia, in a major upset 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 the Democrats’ midterm push in November. .
Sinema’s opposition to the carried interest loophole – which allows investment managers to pay a lower rate of tax on their income – was expected. Sinema said Thursday that she “looks forward” to working on deferred interest tax reforms to protect “investments in the U.S. economy” and encourage “continued growth” while shutting down what she 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 expected to return to the Capitol for a rare weekend session to begin the voting process before the August break.