As we reported earlier, there’s an ongoing “vote-a-rama” happening on the Manchin-Schumer deal, where the Republicans are trying to offer amendments to blunt the harm of the bill and expose the Democratic lies about it. Democrats said that 87,000 IRS agents added to the list were meant for billionaires. Democrats rejected an amendment to limit the bill’s applicability to individuals with more than $400,000 in income.
Now, however, there was a final roadblock to the bill. It came from Senator Kyrsten Sinema, D-AZ.
Allow me to briefly explain.
1. At this moment, the bill doesn’t have 50 votes.
2. B/c @SenatorSinemaThe corp. minimum tax (15%) would not apply to certain businesses with subsidiaries, including private equity and hedge funds.2/
— Lisa Desjardins (@LisaDNews) August 7, 2022
So WHERE ARE YOU:
– Democrats do not have 50 votes for this bill in reality at the moment.
– Though they have 50 in theory IF they can work things out w/ Sinema.
– At the moment though, this is a rather tough stare-down.We don’t know how or when it will be resolved.
— Lisa Desjardins (@LisaDNews) August 7, 2022
Sinema and Senator GOP Whip John Thune were in discussion about an amendment to the 15 percent corporate tax minimum. The discussions were also attended by Senator Joe Manchin (D–WV).
This issue was raised after Sinema, a senator familiar with the matter, discovered in a draft bill language that could have been used to show how companies controlled by private equity funds can be subject to the 15% corporate minimum taxes if their total book income is more than $1 million.
Sinema is successful in altering this provision. The bill could raise $35B less revenue. This would potentially reduce the approximately $300B in deficit savings. Manchin’s top priority.
In a potential problem for Democrats, Sinema could back a Thune amendment to exempt those companies from the corporate minimum tax – and pay for the lost revenue by extending for a year a limitation on individuals’ state and local tax deductions through 2026.
If they did that, it would increase the likelihood that they lose Democrats who are opposed to these limitations being repealed.
Even if they agree to the amendment, it is possible that they will lose the House vote.
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