Sinema’s Demands on Carried Interest, Taxes Imperil Manchin Deal

Senator Kyrsten Sinema is privately seeking changes to the party’s tax, health and climate bill, but accommodating her threatens the delicate balance that just last week convinced Senator Joe Manchin to endorse the legislation.

Manchin and Sinema were lead negotiators on last year’s $550 billion bipartisan infrastructure bill and together have thwarted attempts by fellow Democrats to enact many of President Joe Biden’s priorities. Now, as Democrats prepare to vote on a whittled-down version of Biden’s economic plan, they are on a collision course over which taxes to raise and how much to cut the deficit.

Manchin, a West ...