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 WarnerPolicymakers forget duty to protect taxpayers from financial failures Donna Brazile: Congress has duty to halt Trump on Russia sanctions Lawmakers told of growing cyber threat to election systems MORE (Va.), Jeanne Shaheen Jeanne ShaheenDems push for more action on power grid cybersecurity Senate overwhelmingly passes Russia sanctions deal Russia sanctions deal clears key Senate hurdle MORE (N.H.), Bob CaseyBob CaseyLive coverage: Senate Dems hold talkathon to protest GOP health plan Ryan Phillippe to visit Capitol Hill to advocate for military caregivers Dem senators seize on Senate press crackdown MORE Jr. (Pa.), and Patty MurrayPatty MurrayDems push for more action on power grid cybersecurity Live coverage: Senate GOP unveils its ObamaCare repeal bill Senators grill Perry on Yucca nuclear storage plans 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.