Aug 17, 2022 - Politics

Kelly won't say whether Sinema was right to save carried interest loophole

A man in a suit talking.
Sen. Mark Kelly outside the Capitol. Photo: Mariam Zuhaib/Associated Press

During a press event Tuesday, Democratic Sen. Mark Kelly wouldn't say whether he supported Democratic Sen. Kyrsten Sinema's saving the carried interest tax loophole.

  • The loophole mainly benefits private equity professionals by allowing them to pay lower investment tax rates on parts of their compensation.
  • Democrats tried to close the loophole in the $740 billion tax, climate and health care bill that President Biden signed into law on Tuesday.

State of play: Sinema, who was needed to pass the Inflation Reduction Act, required senate leadership to remove the carried interest provision to win her vote.

The latest: Kelly rallied with ASU students Tuesday and talked about the importance of the Inflation Reduction Act, especially provisions that combat climate change.

  • But after the event, he dodged questions about whether it was appropriate that Sinema held up the bill with her demand to preserve the carried interest loophole.

What he's saying: "You're going to have to ask Senator Sinema. I've worked very closely with her on all this legislation, and we work very hard to deliver for the American people."

Of note: Sinema spokesperson Pablo Sierra-Carmona said in a statement that the senator makes every decision based on what's best for Arizona.

  • "At a time of record inflation, rising interest rates and slowing economic growth, disincentivizing investments in Arizona businesses would hurt Arizona’s economy and ability to create jobs."

What's next: Kelly would not definitively say whether he'd support future efforts to close the tax loophole.

  • He said he was "generally not supportive" of tax provisions that exclusively benefit wealthy people but said he would have to review any other proposed changes to the carried interest tax loophole.
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