Shortly after losing his 2018 primaries to progressive newcomer Alexandria Ocasio-Cortez (DN.Y.) in a major political turmoil, 10-year-old Congressman Joe Crowley joined one of K Street’s biggest lobbying firms, and new reports show that the former chairman of the House of Representatives of the Democratic Caucus is now working to torpedo his party’s proposed tax hikes for corporations and the rich.
A recent document filed on the Senate Disclosure website shows that Crowley and other lobbyists from Squire Patton Boggs – a giant corporate law firm whose clients include Amazon, Royal Dutch Shell, UnitedHealth, and the Saudi monarchy – were hired by the securities industry in July and Die Financial Markets Association (SIFMA), “one of Wall Street’s most powerful stakeholders,” reported The Intercept on Friday.
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“SIFMA, whose members range from BlackRock and JP Morgan to Amazon Web Services and IBM,” noted The Intercept, “used Crowley to court his old colleagues while the Democrats legislate to implement Build Back Better -Complete President Joe Biden’s initiative to create a fairer tax system and higher revenue to pay for expanded Medicare coverage, universal pre-K and other domestic priorities. “
According to Sara Sirota, a reporter for the news agency:
Senior lawmakers who have become lobbyists, like Crowley, usually serve their customers with special interest by convincing former allies to promote the industry’s talking points with committee chairs or party leaders. On September 24, Texas Democratic MPs Vicente González, Henry Cuellar and Filemón Vela dispatched House Speaker Nancy Pelosi [D-Calif.] and Senate Majority Leader, Chuck Schumer [D-N.Y.] a letter criticizing the proposed tax increases on corporate foreign profits that Crowley is now seeking for SIFMA. Crowley’s former leadership team campaigned for all three Congressmen during his tenure in Congress, and Vela was a vocal supporter of Crowley’s leadership ambitions.[…]
This wasn’t the only time González, Cuellar and Vela tried to undermine the House Democrats’ Build Back Better Act. They also joined the unsuccessful attempt by New Jersey Democratic MP Josh Gottheimer to weaken the party’s unity and commitment to finalizing the reconciliation process that will allow the bill to be passed by simple majority.
Although Crowley opposed the GOP’s Tax Cuts and Jobs Act 2017 while in Congress – calling it a “tax fraud” benefiting the “largest and richest multinationals in the history of the world” – the former lawmaker is now at work along with Wall Street, attempts by Democrats to undermine progressive reforms.
SIFMA is particularly opposed to efforts to lower the rate on global intangible low taxed income (GILTI) from the current 10.5% – set four years ago by Republicans and viewed by Democrats as handouts to multinational corporations – to 16.5 % to increase.
This modest increase is lower than the rate targeted by Biden and a majority of Democrats in Congress, who want to bring the GILTI and domestic corporate tax rates in line – now at 21%, but possibly higher if current legislative proposals are successful – to offshoring scare off.
Sirota noted that IBM’s “Global Tax Policy Director said earlier this year that the Democrats’ plan to fix this fraud” punishes companies that have been operating overseas for years. “
SIFMA has also “made clear its opposition to the Build Back Better Act tax increases for the wealthiest,” added Sirota. “Days after the Ways and Means Committee finalized the marking, SIFMA CEO Tim Cameron announced on Jan.