Senate Democrats are discussing whether to dial back some of their proposed tax hikes on investors and big corporations to win over Arizona Sen. Kyrsten Sinema, The Washington Post reports.
While Sen. Joe Manchin and other Senate Democrats all appear to agree on the deal the West Virginia Democrat cut with Senate Majority Leader Chuck Schumer, Manchin and others have focused on winning the support of Sinema, a holdout who has not commented on the proposal.
Sinema previously rejected any changes to the Trump tax cuts from 2017.
Manchin’s deal is largely focused on measures Sinema previously agreed to in earlier negotiations but they may be at odds over a measure that closes the carried interest loophole.
The closed interest loophole allows hedge funds, private equity firms and real estate managers to be taxed on their compensation at a much lower rate than other earned income: about 21% compared to 37%.
The second tax provision in the bill would create a 15% minimum tax on companies that earn over $1 billion a year, many of which currently pay no income taxes.
Sinema has discussed the two items behind the scenes but her requests are unclear. She previously said she was open to a corporate minimum tax.
Manchin told reporters on Tuesday that he and Sinema are “exchanging texts back and forth.”
Manchin was seen crouching next to Sinema on the Senate floor on Tuesday.
“She’ll make a decision based on the facts,” he told reporters afterward.