Sinema Is Potential Obstacle for Senate’s Landmark Tax, Climate and Drug Bill
- Decision from potential holdout not expected until next week
- Carried-interest tax change seen as potential issue for Sinema
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Arizona Democratic Senator Kyrsten Sinema has emerged as a potential obstacle to her party’s efforts to pass a landmark tax, climate and health-care package next month, in part due to long-standing opposition to closing the carried-interest loophole.
Senate Majority Leader Chuck Schumer and West Virginia moderate Joe Manchin announced a deal on a package of $369 billion in climate and energy spending and $313 billion in corporate tax increases, along with an increased tax rate on carried interest and increased tax-audit funding, on Wednesday. Many Democratic caucus members have embraced the agreement, but all 50 need to be on board for it to pass the Senate using a special budget process in the face of united Republican opposition.