Tax increase on carried interest struggles in the Senate

Brown is one of a handful of centrist Senate Republicans who Democratic leaders thought might support the tax increase. 

His opposition to the increase, along with Democratic Sens. Mark WarnerMark Robert WarnerSenate panel moves forward with bill to roll back Dodd-Frank Comey back in the spotlight after Flynn makes a deal Warner: Every week another shoe drops in Russia investigation MORE (Va.), Jeanne ShaheenCynthia (Jeanne) Jeanne ShaheenDems demand Tillerson end State hiring freeze, consult with Congress The Hill Interview: GOP chairman says ‘red flags’ surround Russian cyber firm Schumer celebrates New York Giants firing head coach: ‘About time’ MORE (N.H.), Bob CaseyRobert (Bob) Patrick CaseyThe Hill's 12:30 Report Avalanche of Democratic senators say Franken should resign Dems look to use Moore against GOP MORE Jr. (Pa.), and Patty MurrayPatricia (Patty) Lynn MurrayDemocrats turn on Al Franken VA slashes program that helps homeless veterans obtain housing: report The Hill's 12:30 Report MORE (Wash.), who also signed the letter, makes it seem virtually impossible Senate leaders will get the 60 votes they need to pass the extender legislation from the chamber.

Democratic leaders in both chambers hope to advance the bill to the White House before the Memorial Day recess. To accomplish this feat, they might replace the tax increase on carried interest with a tax increase on foreign insurers, sources told The Hill last night. 

The replacement provision would no longer permit foreign-controlled insurers to write off profits made on U.S. policies and would raise raise approximately $17 billion, according to the Joint Committee on Taxation. 

The tax increase on carried interest is expected to raise $20 billion, meaning lawmakers would need to find additional offsets worth $3 billion if they go the foreign insurer route.