U.S. Senator Kyrsten Sinema, a Democrat from Arizona, successfully blocked her party's long-standing effort to increase taxes on high-net-worth individuals.
Her income from private equity experts, hedge fund managers, and venture capitalists, whose taxes would have gone up under the proposal, totaled about $1 million.
Democrats have long pledged to increase taxes on these investors because they pay a much lower rate on their gains than regular workers do.
Sinema, however, forced a number of changes to her party's $740 billion election-year spending plan just as they were approaching that objective last week.
She eliminated a proposed "carried interest" tax increase on private equity earnings and secured a $35 billion exemption that will shield much of the sector from a separate tax
Congress gave the package its final approval on Friday, maintaining Sinema's changes. President Joe Biden is anticipated to sign the bill into law the following week.
Sinema has long associated herself with the goals of private equity, hedge funds, and venture capital, bringing in at least $1.5 million in campaign contributions.
she has amassed $983,000 since last summer more than doubled what the sector gave to her during all of her prior years in Congress put together
She served as a reminder of how powerful lobbying efforts can dramatically affect how legislation is drafted, especially in the equally divided Senate
A trade body that advocates on behalf of private equity, the American Investment Council, also defended their campaign to overturn the tax rules.
Records show that in only two weeks in September, Sinema received contributions totaling $47,100 from 16 senior executives at the private equity company.