Interest groups prepare for battle

Advocacy groups across the political spectrum are gearing up for total war over President Joe Biden’s proposed tax reform, which is expected to include tax increases on wealthier families and businesses as part of his massive infrastructure plan.

It is preparing to be the “Super Bowl for tax reform”, according to a person who plans to join the fight. This person, who did not want to be identified to speak freely, expects a “protracted battle”.

These are some of the groups that will be involved in the fight, according to interviews with their leaders and representatives:

• Americans for Prosperity, part of the Koch network
• Americans for Tax Reform, a conservative group
• Our Revolution, a progressive group that emerged from Senator Bernie Sanders’ 2016 campaign
• Americans for tax justice
• Progressive Change Campaign Committee
• Patriotic Millionaires, a liberal group that aims to raise taxes on the wealthy

Biden said, since his campaign, that he wants to raise taxes on those who earn more than $ 400,000 a year and that he wants to increase the corporate tax rate from 21% to 28%. The president also wants to tax long-term capital gains at the same rate as the salaries of families who earn more than $ 1 million a year.

Several reports indicate that Biden is considering using these tax increases to pay at least partially for the infrastructure package, which is expected to cost more than $ 2 trillion.

Conservative and libertarian-oriented groups made approving ex-President Donald Trump’s tax plan one of the top priorities at the beginning of the government. All Senate Republican lawmakers voted yes to the 2017 bill, with the exception of then Sen. John McCain, R-Ariz., Who was absent due to his fight against cancer.

Now, these groups, including the one backed by billionaire Charles Koch, are preparing to campaign against Biden’s tax reform proposal.

The Koch network, through its Americans for Prosperity political advocacy arm, has made maintaining Trump’s tax cuts part of its agenda under the new administration and Congress. Democrats also control the House and Senate, albeit by small margins.

The group warns that a tax hike will hurt a recovering economy, which has suffered a severe blow due to the coronavirus pandemic.

“The tax cuts and jobs Act was a tremendous victory for the American people and helped them keep more than they earn to invest in their families, businesses and communities,” AFP President Tim Phillips told CNBC. “Recovering these cuts or adding new taxes would worsen our already devastated economy, hurt workers’ wages, crush small businesses and, ultimately, not come close to paying for the party wish lists that President Biden and Congress leaders are on. proposing. “

Trump’s tax cuts have reduced the corporate rate from 35% to 21%.

A person familiar with the matter said that AFP has already been involved in taxes and other economic policies with the offices of lawmakers on both sides of the corridor. That person did not specify which offices.

One of the group’s digital ads simply calls for “no tax increases”.

Americans for Tax Reform, which was founded by the anti-tax crusader Grover Norquist, for years refused any attempt to raise taxes. The group was a staunch supporter of Trump’s tax cuts and is already promoting through its website some of the ways it intends to attack Biden’s plan.

Norquist, the group’s president, told CNBC that Americans for Tax Reform plans to use national and regional ops to try to convince voters that Biden’s tax plan would ultimately impact his 401 (k) s, utility bills and other Items.

He hopes that such an approach will put pressure on moderate Democrats to oppose or dilute fiscal proposals. Democrats hold a small majority in the Senate, due to Vice President Kamala Harris’ tiebreaker vote.

“Our plans are for a full judicial press to make voting more expensive,” said Norquist. “You want to make it politically so expensive for people to reduce the size and scope of the legislation.”

The campaign, he added, will go ahead “with the hope that you will do it so successfully that they say we will not do it until next year, not this year.”

Norquist suggested that Sens. Catherine Cortez Masto, D-Nev., And Mark Kelly, D-Ariz., Who are running for re-election in 2022, can feel the pressure of their group’s efforts. Cortez Masto and Kelly’s representatives did not return requests for comment.

Senator Joe Manchin, DW.Va., who cannot be re-elected next year, said he supports a large-scale infrastructure measure that, he said, should include raising the corporate tax rate to about 25%.

Across the corridor, progressive organizations see an opportunity to fulfill one of their top priorities: raising taxes on the rich. The struggles of working and middle-class families during the pandemic show that it is time to pass comprehensive tax reform aimed at the wealthy, they argue.

Democratic lawmakers and liberal organizations that push for higher taxes for businesses and the wealthy often cite opinion polls that show that many voters agree with them.

A Reuters / Ipsos poll in 2020 said that 64% strongly agree or to some extent that “the very rich should contribute an extra portion of their total wealth each year to support public programs”.

Our Revolution, a progressive organization led by Sanders, is planning a broad grassroots effort to persuade lawmakers on both sides to support raising taxes on the rich. Sanders, who calls himself a democratic socialist, has for years asked the rich to pay more taxes. The Vermont senator, along with the Democrats, including Sen. Elizabeth Warren of Massachusetts, recently proposed a total annual tax of 3% on wealth in excess of $ 1 billion.

Paco Fabian, campaign director for Our Revolution, said the teams will do telephone banking as part of that effort.

“Corporations and the rich need to pay their fair share. We saw an incredible amount of profit pandemic as people lost their jobs and their healthcare,” said Fabian in describing the message the group will convey to lawmakers during the outreach campaign.

The Progressive Change Campaign Committee, which is aligned with Warren, said it will be active behind the scenes on the issue.

“For the Build Back Better debate, we will do things like behind the scenes research, communicating with Democratic lawmakers and ensuring that our national affiliation and the general public are fully galvanized,” said Adam Green, co-founder of the group, referring to the Biden’s name gave his infrastructure plan.

He said the organization plans to contact the White House and members of the House and Senate.

Green said his group wants the White House to focus on raising taxes on the wealthiest Americans – but avoid the gas tax.

“The best way for the White House to be bold and maintain peace on earth on the tax front is to focus on progressive taxes, that is, the rich and corporations, rather than regressive policies like the gas tax,” he said. .