The package proposes hundreds of billions of dollars in fresh spending, financed in part through new taxes, including a corporate minimum tax that would require firms with more than $1 billion in annual profits to pay a tax rate of at least 15 percent. As originally written, the provision would have required private equity firms to tally profits from their various holdings and pay the tax if the total exceeded the $1 billion threshold.
Sinema, who for over a year has blocked Democratic ambitions to increase taxes, raised objections on Saturday, according to two people with knowledge of the matter, who spoke on the condition of anonymity to discuss private talks. The senator argued that, without changes to the bill, small and medium-size businesses that happen to be owned by private equity firms would be exposed to the tax, violating a Democratic pledge to hike taxes only on the largest firms.
A Sinema spokeswoman said several Arizona small businesses, including a plant nursery, had raised concerns.