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Progressive groups across the country are at odds with the decision by Sen. Kirsten Cinema, D-Ariz., to remove the carried interest tax loophole from a social spending and tax bill expected to pass the Senate. “Tax exemption” for the wealthy.

The Arizona Democrat announced Thursday that she will “move forward” in support Inflation Reduction Act, the reconciliation package unveiled by Senate Democrats last week. As part of the deal, she successfully eliminated an interest tax provision heavily used by wealthy Americans.

In a series of statements provided to Fox News Digital, progressive groups took aim at the film’s decision, saying the loophole has historically benefited wealthier Americans and argued that it should be eliminated.

Cynthia Carrizales, press secretary for the Progressive Change Campaign Committee, emphasized the film’s move to “remove loopholes that only benefit wealthy Wall Street financiers.”

Movie among top private equity cash recipients as she removes billionaire tax loophole from Manchin bill

A Democrat from Arizona, Sen.  Kirsten Sinema has faced backlash from progressives over her move to remove an interest tax loophole used by wealthy Americans from the Inflation Reduction Act.

A Democrat from Arizona, Sen. Kirsten Sinema has faced backlash from progressives over her move to remove an interest tax loophole used by wealthy Americans from the Inflation Reduction Act.
(Al Drago/Bloomberg via Getty Images)

Cynthia Carrizales, press secretary for the Progressive Change Campaign Committee, emphasized the film’s move to “remove loopholes that only benefit wealthy Wall Street financiers.”

“Senator Sinema’s move to protect a loophole that only benefits wealthy Wall Street financiers sounds more like an application for a job after she loses the next primary than an attempt to help everyday Arizonans or Americans,” Carrizales said. “Fortunately, despite the movie, Democrats are on track to pass a law for the first time in decades that would finally force tax-dodging corporations to pay taxes — reducing their share of the burden on working families.”

Frank Clemente, executive director of Americans for Tax Fairness, said the movie’s decision was “an insult” to Americans who pay their taxes.

“Senator Sinema’s insistence on maintaining a fraudulent interest tax loophole for everyone who pays their fair share of taxes,” said Clemente. “Her support for a tax break that would exclusively benefit ultra-wealthy money managers shocks the conscience.”

Similarly, Americans for Financial Reform, a progressive nonprofit organization, favors eliminating the loophole entirely because it mostly benefits people who are “already rich.”

The film will come up for a vote on August 4, 2022 at the US Capitol in Washington, DC.

The film will come up for a vote on August 4, 2022 at the US Capitol in Washington, DC.
(Drew Angerer/Getty Images)

“AFR has long called for the complete elimination of this loophole, which primarily benefits the already very wealthy,” said Carter Dougherty, communications director for Americans for Financial Reform. “The draft law envisages only very modest changes in this tax provision.”

The Manchin-Schumer spending bill targets a tax loophole favored by investors

Cinema’s office, however, argued that the senator “does what’s best for Arizona” and concluded that incentives to invest in businesses could be fatal to the economy.

“Kirsten has been clear and consistent for over a year that she will only support tax reform and revenue options that support Arizona’s economic growth and competitiveness,” her office said in a statement shared with Fox News Digital. “At a time of record inflation, rising interest rates and slowing economic growth, withholding investment in Arizona businesses hurts Arizona’s economy and ability to create jobs. Senator Cinema bases every decision on one criterion: what’s best for Arizona.”

Sinema is widely seen as the last senator Democrats need to pass the plan on climate, energy, health care and taxes, which, if it becomes law, would be confined to a year of intra-party debate. With her support, Majority Leader Chuck Schumer, D-N.Y., said he expects all 50 Democrats to vote for the measure.

Senate Majority Leader Chuck Schumer, DNY., speaks to reporters after a closed-door caucus luncheon at the Capitol in Washington, Tuesday, July 19, 2022.

Senate Majority Leader Chuck Schumer, DNY., speaks to reporters after a closed-door caucus luncheon at the Capitol in Washington, Tuesday, July 19, 2022.
(AP Photo/J. Scott Applewhite)

“I am pleased to report that we have reached an agreement on the Inflation Reduction Act I believe the entire Senate Democratic caucus will have the support,” Schumer said this week. “The final version of the reconciliation bill, which will be introduced on Saturday, reflects this work and puts us one step closer to implementing this historic legislation. into law.”

Sinema’s move is a win for the private equity sector, which has poured a large amount of cash into her campaign coffers.

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As previously reported, private equity and investment figures and political action committees contributed $282,650 to her campaign this election cycle, making her the Senate’s sixth-highest recipient from the movie industry, according to data compiled by the Center for Responsive Politics. .

Under the loophole, a private equity manager’s income is taxed as a capital gain – levied at 23.8% – rather than ordinary income, taxed at 37.9%.

Fox News’ Joe Skafstall, Tyler Olson and Megan Henney contributed to this story.