WASHINGTON — Sen. Kyrsten Sinema is seeking to preserve a tax break for investment managers and narrow a levy hike on large corporations in the economic package Democrats want to pass as soon as this week, people familiar with the discussions said.
The Arizona Democrat, a pivotal vote in the Senate, is asking to drop a provision from the bill that would narrow a tax break for fund managers, known as carried interest, according to one person, who asked for anonymity because the discussions are private. She is also pushing to narrow the 15% domestic minimum tax on financial profits, also known as the book tax, people said.
Democrats need Sinema’s support to pass the bill using the fast-track budget procedure they are employing to bypass Republicans. Changing the tax provisions risks irking West Virginia Sen. Joe Manchin, who negotiated the package with Senate Majority Leader Chuck Schumer. Manchin has said he is “adamant” that the carried interest change remain in the bill.
