The Thune amendment, which modified the provision in the IRA imposing a 15% minimum tax on businesses with $1 billion or more in profits by exempting subsidiaries of private equity firms. That would have reduced the revenue produced by the bill by $35 billion. To make up the difference, Thune's amendment also would extend for one year (until 2026) the cap on deductions for state and local taxes. It passed with support from seven Democrats--Kelly, Sinema, Warnock, Ossoff, Masto, Hassan, and Rosen.
The problem with the Thune amendment was that in the House, members from states with high state and local taxes strongly oppose the cap on state/local tax deductibility.
The Warner amendment solved that problem by stripping out the part of the Thune amendment that extended the state and local tax deductibility cap and found a different way of making up the $35 billion cost of the private equity exemption by extending for two years a limitation on the amount of losses that certain businesses can deduct from their taxes. It passed with all 50 Democrats voting for and all republicans against.
= new reply since forum marked as read
