And now we turn our attention to the Terrible Sand Kingdom of Arizonastan, as we must try to figure out WTF is going on with their new maverick, the reliably bought-and-stays-bought Kirsten Sinema:
[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.
The Arizona Democrat, a pivotal vote in the Senate, is asking to drop a provision from the bill that would scale back a tax break for fund managers, known as carried interest… She is also pushing to narrow the 15% domestic minimum tax on financial profits, also known as the book tax.
Sinema has been heavily lobbied by corporate America since the IRA went public, and now it looks like she wants to eliminate scaling back the carried interest loophole, which would change the way hedge funders investment income is taxed. As we noted, this is quite narrow, and clearly benefits a donor. Just saying.
Cutting that provision takes about $14B ameros off the table and would, you know, perpetuate an unfair tax code.
Reportedly, Sinema also wants $5 billion in drought resiliency funding added to the bill, which seems reasonable enough in the TSKoA, and fits in the general theme of climate change.
Tiger Beat on the Potomac morning email thingie notes that there is still another rocky shore: the senate parliamentarian:
Meanwhile, Caitlin Emma and Marianne LeVine report that there are at least four policies in the reconciliation bill that their sources believe could be vulnerable to a Byrd Rule challenge before MacDonough, who, as Senate Parliamentarian, is the second most powerful person in Washington (after Sinema) for the next week or so:
- Capping out-of-pocket costs for insulin.
- A plan “to penalize drug companies when they raise prices on those with private health insurance.
- Restrictions on electric car tax credits that require eligible vehicles to have batteries “made with materials from the U.S. or countries that have trade agreements with the U.S.” (Sen. DEBBIE STABENOW (D-Mich.) wants to make the EV tax credit limits less stringent for non-Byrd Rule reasons, report Bloomberg’s Ari Natter and Erik Wasson.)
- “A requirement that the Interior Department must auction at least 2 million acres of land within a year for onshore oil and gas leases before allowing for solar and wind projects on public lands.”
So we still have a lot of eff’ery to come.