Sinema, an Arizona Democrat, opposed limiting the carried interest loophole and expressed concern about the impact of the 15 percent minimum corporate tax on large companies proposed in the Democratic bill. Changing those provisions would significantly reduce the revenue the bill generates, posing a potential problem with Manchin, who wants the measure to reduce the deficit. A 1% excise tax on companies when they buy back their own stock would raise less than the $124 billion estimated during earlier talks. But it could help offset the $13 billion in capital loss that would result from increasing the holding period for carried interest from three to five years, and the roughly $100 billion that would be lost if Democrats scrapped tax credits for depreciation and amortization. cost recovery from minimum tax. Manufacturers are pushing hard for such an exemption, arguing that the bill as written would create a disincentive to investment and hurt the competitiveness of American manufacturing. Senate Democrats need support from all 50 members of their caucus to pass the bill with a simple majority under special budget rules. Republicans are united against the measure. Democrats are trying to make changes to satisfy Sinema, who is also seeking $5 billion in drought resilience funds that would benefit her state. Schumer said Thursday that he plans to convene the Senate on Saturday to begin a marathon vote on the budget reconciliation bill. As currently written, the bill would bring in $739 billion in revenue and reduce the deficit by about $304 billion. It would also spend $370 billion on climate change and energy programs, while extending Obamacare premium subsidies for three years. ©2022 Bloomberg LP
