John,

One of the most egregious tax loopholes benefiting millionaires and billionaires is known as the carried interest loophole. It almost exclusively benefits private equity money managers on Wall Street and real estate industry big shots. It allows them to pay just a 20% tax rate (instead of the top rate of 37%) on their earnings from managing other peoples’ money, if their clients hold their assets for at least three years, which most do.

The Inflation Reduction Act (HR 5376), which President Biden signed into law earlier this week, originally narrowed the loophole by extending that holding period from three to five years. It would have raised $13 billion over a decade from wealthy money managers. But, it was cut out at the last minute at the insistence of Corporate Democrat, Senator Kyrsten Sinema (AZ).

In an expose by the Associated Press, we learned that Sinema “received nearly $1 million over the past year from private equity professionals, hedge fund managers and venture capitalists whose taxes would have increased under the plan.”[1]

There’s still time left this year to fix this Sinema wrong. It starts by letting her know how outraged we are that she is protecting a loophole that benefits her wealthy Wall Street donors rather than working to unrig our tax system.

Sign the petition to Kyrsten Sinema, demanding she put the needs of her constituents over Wall Street greed. Demand Senator Sinema support closing the carried interest loophole now.

Thank you for fighting to unrig our tax code and hold members of Congress accountable to voters, not their wealthy campaign contributors.

Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund

[1] “Sinema took Wall Street money while killing tax on investors,” Associated Press, Aug. 13, 2022