Sen. Kyrsten Sinema has not said yet whether she will support the Inflation Reduction Act, the $739 billion package hammered out by Sen. Joe Manchin and Senate Majority Leader Chuck Schumer and announced last Thursday, but as she reviewed the 725-page bill over the weekend, reports suggested she is likely to object to a $14 billion provision taking aim at the preferential tax rates for wealthy investors—who make up a large portion of her donor base.
Sinema (D-Ariz.) has long objected to the closure of the carried interest loophole, which pertains to the percentage of profits hedge fund managers keep from investments. The profits are taxed at a rate of about 20% compared to the 37% top tax rate for ordinary income.
