Sinema Accepted Contributions from Private Equity Firms Before Killing a Tax on the Industry

Kyrsten Sinema, along with West Virginia Senator Joe Manchin torpedoed Biden’s Build Back Better agenda in 2021. Late last month, they signaled they would support the pared-down Inflation Reduction Act, after significant concessions from the rest of the Democratic party.

Kyrsten Sinema, the Arizona Democrat who forced the removal of a provision that would have increased taxes on wealthy investors, received nearly $1 million in campaign contributions this year from the industry that tax would have affected.

Sinema was once a self-proclaimed socialist, a Green party advocate, and once compared campaign contributions to bribes. But that was before she was sworn into office. In the time since her stances have changed.

The campaign contributions came from private equity professionals, hedge fund managers, and venture capitalists, groups that would have been most affected by the tax increase. Since coming into office in 2012, Sinema has accepted campaign contributions from the industry but the $983,000 she received this year is more than double what she received from the industry during her political career. It also makes her one of the largest benefactors from the industry currently serving in Congress.

Senate Majority Leader Charles Schumer specifically blamed Sinema for the tax increase not making it into the bill. “Senator Sinema said she would not vote for the bill ... unless we took it out,” he told reporters last week. “We had no choice.”

Sinema also worked to exclude the industry from a separate 15% minimum corporate tax rate in the bill, something she did after being pressed by industry lobbyists according to emails obtained by the Associated Press (AP) and four individuals they talked to under the condition of anonymity.

“Would you and your boss be willing to raise the alarm on this and express concerns with Schumer and team?” wrote Blackstone lobbyist Ryan McConaghy in an email according to the AP. The email also reportedly included proposed language for modifying the bill.

Even still, Hannah Hurley, a spokesperson for Sinema, told the AP that the Senator just happens to agree with the private equity industry’s views on taxes and that campaign contributions have no bearing on how she votes.

“Senator Sinema makes every decision based on one criteria: what’s best for Arizona,” Hurley stated.

But Dean Baker, a senior economist at the Center for Economic and Policy Research disagrees, arguing that the campaign contributions are intended to have an effect.

“From their vantage point, it’s a million dollars very well spent. It’s pretty rare you see this direct of a return on your investment. So I guess I would congratulate them.” He told the AP.

Sinema will be up for reelection in 2024. It will be the first test to see if the campaign contributions she received can overcome her angering her party and democratic voters.