Sinema eyes change components of tax, local weather adjustment invoice

Sen. Kyrsten Sinema (D-Ariz.) is looking to the Democrats for $740 billion.

Why it matters: Sinema is the only senator who could stand in the way of Democrats reaching President Biden’s long-term goal of passing an ambitious package to tackle climate change, health care and taxes, dubbed the 2022 Act. inflation reduction act”.

  • That position gives her enormous leverage as Democrats await a Senate lawmaker’s verdict on whether the bill complies with the “Byrd Rule,” which controls what provisions can be included in the budget reconciliation process.
  • The fact that the negotiations between Senate Majority Leader Chuck Schumer (DN.Y.) and Sen. Joe Manchin (DW.V.) were completely secretive, catching Sinema off guard, left room for her to intervene at the 11th hour.
  • Sinema has so far refused to consider whether to support the bill until parliament has made a decision on the measure.

What we hear: Sources familiar with her thought process tell Axios.

  • She believes that the current 369 billion

For taxes, Sinema is worried about the structure of the 15% minimum “book tax” for companies and whether the burden could be passed on to workers, the sources said.

  • Sinema supports cracking down on tax avoidance but has long voiced its opposition to closing the carryforward loophole.
  • She worries that the provision, which would help the $14 billion USD to pay a total of 740 billion

Behind the scenes: In evaluating the bill, Sinema met privately, both virtually and in person, with key stakeholders in Arizona.

  • Cinema last week visited Flagstaff, Arizonawhere she met with local officials who are still reeling from the recent flooding and wildfires that ravaged the state.
  • Arizona is one of the fastest warming US statesand the state’s largest county, Maricopa County, has already been hit record for heat-related deaths this year.
  • “Some were surprised to learn that Kyrsten was enthusiastic about climate change last year because they rightly see her as a centrist. But she is first and foremost a senator from Arizona,” said John LaBombard, Sinema’s former communications director and ROKK’s senior vice president. Decisions tell Axios.

A a call tuesday with the Arizona Chamber of Commerce, local business leaders and manufacturers discussed with Sinema what the proposed 15% minimum corporate tax and the elimination of carried interest loopholes would mean for Arizona.

  • The private equity industry, which contributed greatly to Sinematries hard to reduce it in order to reduce the share of carried interest.
  • “I remember hearing feedback last year from small business owners concerned about the potential impact of any tax policy changes and how that might affect their capital investment flows,” LaBombard said.
  • “She’s erring on the side of caution when it comes to changing tax policy … obviously, I think [their input] formed, where it is in the economic parts of this bill”.

What they say: “It’s clear from our conversation that she is taking a thoughtful and careful approach as she considers her position on this piece of legislation,” Danny Seiden, CEO of the Arizona Chamber, told Axios’ Hans Nichols.

  • “She was very interested in knowing what specific impact the tax provisions will have on Arizona manufacturers, and we believe she will take those implications seriously as negotiations continue in the coming days.”

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