CNBC reports:

Long before Sen. Kyrsten Sinema, D-Ariz., held up a massive spending bill that promised to create jobs, invest in clean energy and tax the rich — delivering on some of President Joe Biden’s and the Democratic party’s top campaign promises — those working at Wall Street investment firms had donated millions to the freshman senator’s campaign.

One of her main objections was the bill’s so-called carried interest tax provision — which would have closed an arcane loophole in tax law that allowed hedge fund managers, law firm partners and private equity executives, among others, to pay significantly less taxes than ordinary workers.

Closing that loophole, which was estimated to raise $14 billion in tax revenue over the next decade, was supposed to help pay for $433 billion in spending on climate and health initiatives. [Continue reading…]