The Price of Sinema

[Jolly]

Will Schumer pay it?

https://pjmedia.com/news-and-politics/rick-moran/2022/08/04/sinema-wants-changes-to-reconciliation-bill-that-may-torpedo-the-whole-thing-n1618274

[Mik]

Sinema is the new Manchin. She just let him take the heat.

[jon-nyc]

And she’s opposed to closing the carried interest loophole used largely by hedge fund managers to lower their tax rates.

What a lovely Senator they selected.

[Horace]

@jon-nyc said in The Price of Sinema:

And she’s opposed to closing the carried interest loophole used largely by hedge fund managers to lower their tax rates.

What a lovely Senator they selected.

Why do you suppose she opposes that, Jon?

[jon-nyc]

There’s really no principled reason to oppose that, there’s only donations by the private equity and hedge fund guys who purchased the loophole in the first place.

[jon-nyc]

It’s hard to think of another tax loophole that Bush, Obama, Trump, and Biden all agreed should be closed.

[Axtremus]

@jon-nyc said in The Price of Sinema:

There’s really no principled reason to oppose that, there’s only donations by the private equity and hedge fund guys who purchased the loophole in the first place.

Agreed. Nobody looks good to the average voter by defending the carried interest loophole.

Sinema made known early on that she won’t support closing the carried interest loophole. In terms of dollar value it’s a fairly small piece compared to the rest of the deal. I suspect Manchin and Schumer left the carried interest tax provision in there just so Sinema has something to remove and call a “win.”

[jon-nyc]

The new agreement with Sinema includes a new 1 percent excise tax on stock buybacks that will bring in $73 billion, far more than the $14 billion raised by the carried interest provision, according to a Democrat familiar with the deal.

Isn't she swell?

[Horace]

That buyback tax is a new tax on the stock market.

[jon-nyc]

Right, but at least a few hundred hedge fund executives will avoid paying normal income tax on their earnings.

Well done, Krysten!

[Horace]

I wonder if it will cause a measurable move towards dividends rather than buybacks.