VICTORY! Senate Fails to Move Carried Interest Tax Increase


On June 24th, the U.S. Senate held another procedural vote on H.R. 4213, which includes the carried interest tax increase. The purpose of this vote was to end debate on the bill, and it required a three-fifths majority or 60 votes in the Senate. This vote failed with the final tally at 57-41. For the most part the vote fell along party lines, except for Senator Ben Nelson (D-NE) who joined Republicans to vote no. Senators Robert Byrd (D-WV) and Lisa Murkowski (R-AK) did not vote. After this third failed attempt to move the bill forward, Senate Majority Leader Harry Reid (D-NV) has said that the Senate will move on to other business. It is unclear if or when the Senate will resume consideration of H.R.4213.  Senate Leadership was unable to get the votes necessary because of outstanding concerns relating to several provisions in the bill including the carried interest tax increase. The outreach made by ICSC members was hugely important in educating Senators on the unintended consequences of this provision and the negative impact it would have on jobs.  ICSC members sent more than 8,600 emails and letters up to Capitol Hill and made numerous phone calls to their U.S. Representatives and Senators. This tremendous effort will give us more time to strengthen our case against this detrimental tax increase. ICSC will continue to work closely with the tax writing committees in both the House and Senate to educate them on the technical problems that exist in the carried interest tax provision.