Skip to main content

Surprise, surprise: The carried-interest loophole beloved of hedge and private equity fund managers and beloathed of essentially everyone else is going to outlive the latest effort to kill it, no matter how much it scandalizes Bill Ackman.

[Sen.] Kyrsten Sinema… wants to nix language narrowing the so-called carried interest loophole.

Ms. Sinema told donors at a campaign fundraiser Wednesday night on Capitol Hill that it makes no sense to squeeze the private equity industry that will finance projects for the roughly $1 trillion infrastructure and $280 billion semiconductor bills that have recently been signed into law, according to a lobbyist who attended the event.

You can’t say those lobbyists aren’t getting what they paid for in Sinema. Maybe more than they even hope, because the guy who killed the last Democratic effort to get something, anything done has sworn he’ll do it again if the carried-interest provision—which accounts for a mere $14 billion of the $739 billion the bill is expected to raise over the next decade—doesn’t make the finished product. And, of course, even if Sinema gets her way on carried interest, she’s not making any promises.

Democrats are hoping they can close ranks and fend off GOP efforts to change the bill. As in previous vote-a-ramas, Republicans will likely attempt to force Democrats to take politically difficult votes, sometimes by making Democrats vote against proposals they actually support…. Ms. Sinema has told people privately she plans to seriously consider proposed amendments to the climate-spending bill and won’t necessarily vote no to prevent changes to the bill, according to people familiar with her comments.

Kyrsten Sinema is seeking a couple of changes to Democrats' party-line bill. She wants to nix the carried interest provision and add drought funding. [Politico]
Kyrsten Sinema, GOP Fuel Fears for Fate of Democrats’ Climate Plan [WSJ]

For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.

Related

joe manchin

We Regret To Inform You There’s Another Deal To Put And End To The Carried Interest Loophole

And regret even more to acknowledge it’s got about as much chance as every other bid to kill it.

Bill ackman beach

Bill Ackman Takes Bold Position That He Should Pay More In Taxes

The people’s hedge-fund manager has had it with the carried-interest loophole.

Mnuchin Lampert

Hedge Fund Managers Forced To Find Creative New Way To Avoid Paying Taxes

The loophole in the carried-interest loophole is closed, for now.

capitol3

Instead Of Closing Carried-Interest Loophole, Democrats Would Just Make It A Real Pain In The Ass

Of course, neither that plan nor the larger bill of which it is a part is going anywhere, but it’s nice to know all the same.

Getty Images

Oh, Look, Another Doomed Proposal To Kill The Carried-Interest Loophole

A tale as old as time. Or, at least, as old as this website.

(Getty Images)

SEC To Reduce The Number Of Things Private Equity Firms Can Lie About

And also, you know, try to reduce the number of times they lie in other respects.

Tax on Carried Interest Moving Closer to Reality

A new proposal to tax carried interest as ordinary income was just attached to a larger tax and spending bill that could be voted on by the House as early as tomorrow.

Screen Shot 2019-07-08 at 12.11.30 PM

Leon Black Did Nothing Wrong, Will Stop Being Apollo CEO Anyway

He did do twice as much not wrong as previously reported, and is almost 70, so…