Democrats Drop Carried Interest as Sinema Paves Way for Tax Vote

The path was nearly cleared for one of the cornerstones of President Joe Biden’s domestic agenda after Democrats agreed on a revised version of their tax and climate bill.

But it came at a price: To get the support of Senator Kyrsten Sinema -- the pivotal Democratic vote in the 50-50 Senate -- a levy on wealthy hedge fund managers had to be abandoned.

So the Democrats agreed to drop a provision that would have narrowed a tax break for carried interest, meaning wealthy private equity managers and venture capitalists will continue to be able to pay a lower ...