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WEKU
Becky Sullivan

A tax loophole made fund managers rich. Closing it may help pay for the climate bill

Sen. Joe Manchin, Democrat of West Virginia, speaks to reporters about the compromise bill that could substantially alter a tax provision called the "carried interest loophole." (Anna Moneymaker/Getty Images)

Tucked inside the sprawling Senate compromise bill for climate change and health care is an effort, years in the making, to close what Democrats say is a loophole that benefits a handful of the richest Americans: the carried interest tax.

The legislative compromise, reached last week by Senate Majority Leader Chuck Schumer and West Virginia Democrat Joe Manchin, could represent the single largest federal clean energy investment in U.S. history.

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