Posted on 08/06/2022 10:18:15 AM PDT by Signalman
Senator Kristen Sinema (D-AZ) pretended to be upset at the tax increases in the Democratic reconciliation bill and feigned independence. But she was conning us all along.
She was really holding out to fulfill a corrupt bargain with her richest supporters and major campaign donors. At the expense of the average taxpayer, she held back her approval of the Democratic reconciliation package so her rich supporters could skate by paying minimal taxes. Her conduct was so odious that it makes even the Washington swamp look bad.
Her goal was to preserve the carried interest treatment of income earned by managers of hedge funds. The Democrats had eliminated this loophole and Sinema, doing the bidding of her financial backers, refused to agree to the Democratic bill unless carried interest was restored. This tax loophole costs the rest of us $14 billion and confers benefit on a few thousand very rich people.
Hedge fund investors who make investments that earn them money get to pay taxes on their winnings through the capital gains tax, usually paying only 20% of their earnings, a tax break from having to pay regular tax on earned income where the rate tops out at 37%.
They deserve this tax break. After all, they paid income tax on the money they invest so paying any tax at all on their winnings is really double taxation. But at least they have only to pay 20% not the full 37%.
But those who work as managers of hedge funds typically invest no money of their own at all. They are paid a straight salary by their hedge fund for managing the invested money.
But even though none of their own money is at risk, the “carried interest” tax loophole lets them pay only the capital gains tax rate rather than the rate on ordinary income.
It is a total giveaway and ripoff for the taxpayer. These managers have not already paid taxes on their investments since they haven’t made any. Their income should be in the same category as any other worker who is paid for his labor.
The carried interest loophole serves no public purpose and is a total payoff to a special interest.
Representing Arizona in the Senate, Sinema has lots of hedge fund managers in her state who likely give her massive amount of campaign money. And this is their quid pro quo. That Sinema made such a stink about the deletion of carried interest that she used her power to withhold her vote so the entire package would fail to get the needed 50 votes in the Senate was a total outrage and she deserves to be called out for it.
Carried interest has survived this long because it was protected by Senate Majority Leader Senator Chuck Schumer (D-NY). With Wall Street in his state, Schumer said it was his duty to protect hedge fund managers, his constituents. But this year, he gave in to pressure from the left of his party and went along with killing carried interest. His sudden enlightenment was immediately offset by Sinema’s selfishness and corruption.
It takes some talent to be more craven and corrupt than Schumer, but Sinema managed the task.
Same goes for the love affairs Freepers have had in the past over the likes of Manchin and Gabbard.
There is no such thing as a "reasonable" Democrat. Otherwise, they would not be Democrats in the first place.
Some Freepers never learn.
Sinema is a politican. No surprise here.
True dat.
She’s a Democrat. Just like Tulsi Gabbard. Just like Joe Manchin.
I kept saying that both, Sinema and Manchin would eventually come around and vote with the democrats to increase spending and taxes.
IOW, there is no such thing as a moderate democrat nor any democrat that believes in the free-market system. When Biden says he’s a capitalist, he’s 100% lying and thinks that by saying it over and over again, that people will come to believe him.
Democrats are a bigger danger to the U.S. than China or Russi or any other country. When working from the inside, they can get away with anything, including destroying the country’s economy, thereby destroying our defense systems. A strong economy is essential to a strong defense, and democrats and our enemies know it.
Is it the case that you yourself were never taken in by these rapscallions?
Never even for a minute?
Maybe Tulsi for about two minutes.
I am glad she’s watching out for all of us billionaires.
People should flood her mailbox with thank you cards for preserving the tax loophole for all us billionaires.
“There is no such thing as a “reasonable” Democrat”
Same for most Republican Senators.
We need to get an EXCELLENT candidate to take Manchin out a REALLY EXCELLENT candidate!!!
Andrew Cuomo did the same by throwing taxpayer money, and tax breaks into economic development projects that never got off the ground, or ended up being uncompleted. The Central New York Film Hub building outside Syracuse, which cost $15 million to build was eventually sold for just $1. He wasted over $10 billion dollars on those projects, lining the pockets of his biggest donors. His top aide, another Cuomo staffer, and three developers went to Federal prison on corruption and fraud charges linked to those projects, but as usual, a Democrat Governor remained untouched. His father Mario did the same thing when he was Governor, and taught his scummy children that crime pays well.
Eliminating the special treatment of hedge fund manangers' salaries was the only good part I saw of this bill. And now it has been removed to pay off Sinema. May they all catch Monkeypox.
But never forget the evil done by those two rampant shower queens- Patsy Frickin Ryan and Mitchy McConnell - and all of the swamp scum who vote for them.
Never Trust a politician. We have a whole raft of RINOs who are loyal to their donors and betray their voters in a heartbeat.
Santorum is still on the circuit decrying the evils of Trump - two faced RINO traitor.
She knows politicians hold their palms facing upward.
Yep never trust a Democrat. Unlike Republicans who are always “reaching across the aisle” to screw their voter base Democrats stay loyal to their totalitarian goals.
One thing I disagree with the author is that it will cost us $14 billion. The government always spends far more than it takes in. Adding $14billion to the plunder doesn’t diminish the burden on the rest of us in the least nor will taking it out add the our taxes.
I find it highly indicative that she "caved" on the same day that Kari Lake cinched the Republican nomination for governor of Arizona. It could of been a signal from Kristin to her Party to pointedly show where her loyalties lie.
Republicans or Democratic politicians always pay off their donors. That is how political folks are.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.