Sen. Kyrsten Sinema signed the Democratic Party’s sweeping legislation Thursday on climate change, health care and taxes, all but securing the bill’s passage in the Senate.
The Arizona Democrat said her support came after Democrats removed a provision to close the so-called carried interest tax loophole that helps wealthy private equity and hedge fund managers pay lower taxes.
“We agreed to remove the carried interest tax provision, protect advanced manufacturing and strengthen the clean energy economy in the Senate budget agreement legislation,” Sinema said in a statement Thursday. “
Sinema’s comments on the bill, known as the Inflation Reduction Act, come after he won the endorsement of Sen. Joe Manchin of West Virginia, another moderate Democrat. It was seen as the last hurdle to moving the legislation forward.
Sinema has long opposed a provision of the deal Manchin cut with Senate Majority Leader Chuck Schumer that was trying to reverse interest.
In its statement on Thursday, Sinema said it hoped “to implement interest tax reforms, protecting investment in the American economy and encouraging continued growth, while closing the most egregious loopholes that some abuse to avoid paying taxes.”
Democrats aim to pass the legislation before the August recess in an effort to revive elements of President Joe Biden’s agenda ahead of the midterm elections.
“I’m pleased to report that we have reached an agreement on the Lower Inflation Act that I believe will receive the support of the entire Senate Democratic conference,” Schumer said in a statement Thursday. “The final version of the Reconciliation bill introduced on Saturday will reflect this work and bring us one step closer to passing this historic legislation into law.”