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Sinema stands by decision to kill tax hike on investors

Sen. Kyrsten Sinema of Arizona
AP Photo
Sen. Kyrsten Sinema

Arizona Democratic Sen. Kyrsten Sinema stood by her decision to kill a tax hike on investors during an event in Flagstaff earlier this week.

Sinema has received nearly $1 million in campaign contributions over the past year from private equity professionals, hedge fund managers and venture capitalists.

For years, Democrats have promised to raise taxes on such investors. But Sinema forced a series of changes to the $740 billion spending package, eliminating a proposed tax increase on these same entities. The bill — with Sinema’s alterations — is set to be signed by President Biden this week.

Some critics say she let the contributions influence her decision.

But Sinema says that’s not the case. Instead, she says she simply did what’s best for Arizona during a brief stop in Flagstaff Tuesday.

“The tax provisions that were proposed by some of my colleagues in that bill would have negatively impacted small and mid-sized businesses in Arizona and I was unwilling to accept tax hikes on small and mid-sized businesses," Sinema said.

But theAssociated Pressreports that many in the Democratic Party see her defense of the favorable tax treatment received by investors as “indefensible.”

Bree Burkitt is the host of Morning Edition and a reporter for KNAU. Contact her at bree.burkitt@nau.edu.