On Monday, Axios reported that big business interests are scrambling to lobby Sen. Kyrsten Sinema (D-AZ) to tank the Inflation Reduction Act — the large health care, climate, and deficit reduction package agreed to between Democratic leadership and Sen. Joe Manchin (D-WV).
Sinema, being one of the most fiscally conservative Democrats in the Senate, was a key obstacle to former reconciliation bills, but according to the report, business leaders feel they have a limited window to convince her this time.
"The National Association of Manufacturers and the Arizona Chamber have launched a six-figure digital and TV ad buy — compressed into one week — to saturate the Phoenix and Tucson media markets," reported Hans Nichols. "'Taxes won’t strengthen supply chains, promote energy security, or fill vacant jobs,' the narrator says. 'Say 'No' to taxes that would devastate Arizona manufacturers.'"
"If successful, the barrage of paid media and personal phone calls will knock out the main provision that terrifies the business community: a 15% minimum book tax that will cost the biggest 150 U.S. companies some $313 billion over 10 years," said the report. However, "The clock is ticking to persuade Sinema to play her hand — and potentially force Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.Va.) back to the drawing board on how to pay for the $370 billion in new climate spending."
"She’s feeling the pressure to vote yes on something,” admitted Arizona Chamber of Commerce CEO Danny Seiden. "I hope that she gets this deal opened back up."
Sinema has previously expressed support for a corporate minimum tax similar to that proposed in the bill. However, she has consistently opposed another tax provision included in the bill, which closes the so-called "carried interest loophole" shielding some investment income from taxation. This provision raises far less money, just $14 billion. However, Manchin has said he is "adamant" about keeping this provision in the bill, likely requiring that the two senators work out a compromise on the matter before the bill can move forward.