Unrealized gains group recruits another red state Dem

By Caitlin Oprysko

With Daniel Lippman

TAX COALITION RECRUITS ANOTHER RED STATE DEM: The dark money group working to prevent proposed tax hikes on unrealized gains has added another former red state Democratic senator to its cause as the Supreme Court prepares to hear a case tax watchers say could doom the prospects of a wealth tax down the line.

— Ben Nelson, the former two-term senator from Nebraska, is joining former Louisiana Sen. John Breaux at Saving America’s Family Enterprises Inc., or SAFE, a nonprofit founded in 2021 by former North Dakota Sen. Heidi Heitkamp to defeat Democratic efforts to close the so-called step-up basis loophole.

— A revamped SAFE whirred back to life earlier this year to fight proposals to tax wealthy households based on the value of unsold assets, adding Breaux, now a lobbyist at Crossroads Strategies, as its spokesperson, and pouring seven figures into an ad blitz across states where Democratic senators face tough reelection fights.

— The group, which is not required to disclose its donors, also filed an amicus brief in Moore vs. United States, which the Supreme Court will take up in December. While the case targets the constitutionality of a repatriation tax from Republicans’ 2017 tax bill, “there is widespread trepidation the court’s conservative majority will use” the case “as a way to slam the door on the possibility of a wealth tax — and, in the process, inadvertently wreak havoc in the code,” POLITICO’s Brian Faler wrote last month.

— Breaux has since been popping up on talk radio in states like Pennsylvania and Montana to weigh in on the issue, and now Nelson is joining SAFE as a senior adviser. “Taxing hardworking Americans on unrealized gains is bad policy that would threaten the vitality of many small businesses and family-run enterprises,” he said in a statement, arguing the provision “would add more complexity to the tax code and force Americans to sell assets just to pay the tax.”

Happy Tuesday and welcome to PI. Send lobbying tips and gossip: coprysko@politico.com. And be sure to follow me on X, the platform formerly known as Twitter: @caitlinoprysko.

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AI PLAYERS LOBBY UP: An upstart advocacy group raising the alarm about the potential for “catastrophic risk” that comes along with AI’s proliferation has hired its first federal lobbyists in its push for a federal framework to address those threats.

— The Center for AI Policy, led by former AI safety researcher Thomas Larsen, launched earlier this summer, and hired Ferox Strategies at the end of August, according to newly filed disclosures.

— CAIP aims to educate lawmakers about the urgency of addressing AI risks and is looking to capitalize on momentum for an AI bill by pushing a framework that would establish a federal AI regulator. CAIP is calling for guardrails for developers of advanced AI tech to hold them to safety standards and track the distribution of advanced AI hardware, along with liability for damages over $100 million. The organization also wants to give the federal government authority to pause AI development deemed an imminent threat.

— Scale AI, which provides AI development platforms and training data to support AI applications including OpenAI’s ChatGPT and self-driving tech for companies like Toyota has added Cornerstone Government Affairs to its outside lobbying lineup.

— Nearly a dozen lobbyists from the firm, including former aides to top appropriations and Senate Minority Leader Mitch McConnell, will work on the account to “ensure safe implementation of artificial intelligence through appropriate governance with effective data infrastructure and test & evaluation processes,” according to a disclosure filing. Scale AI, which also has contracts at the Pentagon, also retains the Halcrow Group.

ISRAEL FLOODING SOCIAL MEDIA WITH GRAPHIC PLEAS: “A photo with a bloody dead baby whose face is blurred has been circulating on X for the last four days. ‘This is the most difficult image we’ve ever posted. As we are writing this we are shaking,’ the accompanying message says.”

— But “the footage is not from a reporter covering the conflict in Israel and Gaza, or from one of the countless accounts sharing horrifying videos of the atrocities,” our Liv Martin, Clothilde Goujard and Hailey Fuchs write — “it’s a paid message from the Israeli Foreign Affairs Ministry.”

— “Since Hamas attacked thousands of its citizens last week, the Israeli government has started a sweeping social media campaign in key Western countries to drum up support for its military response against the group. Part of its strategy: pushing dozens of ads containing brutal and emotional imagery of the deadly militant violence in Israel across platforms such as X and YouTube, according to data reviewed by POLITICO.”

— “Israel’s attempt to win the online information war is part of a growing trend of governments around the world moving aggressively online in order to shape their image, especially during times of crisis.”

— “PR campaigns in and around wars are nothing new. But paying for online advertising targeted at specific countries and demographics is now one of governments’ main tools to get their messages in front of more eyeballs,” and the barrage of ads “has posed some challenges to social media companies, which have set standards for what type of content can be posted on their streams.”

JOCKEYING BEGINS OVER ISRAEL RESOLUTION: Over on the Hill, meanwhile, “pro-Israel groups are stepping up their congressional lobbying efforts, as senators prepare bipartisan legislation to provide funding to help the country in its war sparked by a Hamas attack,” per Bloomberg’s Kate Ackley.

— “The American Israel Public Affairs Committee and J Street are among groups reaching out to members of Congress, even as the House has remained mostly at a standstill without an elected Speaker. The push comes as about a dozen House Democrats introduced a resolution calling for a ‘ceasefire’ backed by such outside organizations as the Council on American-Islamic Relations.”

TRAVEL TECH EXPANDS: The Travel Technology Association is expanding its membership eligibility for the first time in its 25-year existence. Four new member companies, Group Travel Odyssey, DCX Travel & Technology, DreamGuest and UCPlaces will join the trade group as part of its new “advocate” member tier, which is aimed at bringing startups and small and midsize travel tech companies into the fold as policymakers in D.C. and in state legislatures mull action on issues from data privacy and various fees to AI policy.

— Ashlyn Roberts has joined the National Venture Capital Association as senior director of government affairs. She was most recently director of government and public affairs at Prism Group.

— Sam Shirzadi has joined Gilbert LLP as its director of litigation support services. He was most recently managing director of client services and director of practice technologies at Innovative Driven.

— Andy Flick is now the director of legislative affairs for Vice President Kamala Harris. He previously was the executive director for the New Democrat Coalition and spent more than 14 years in various senior roles in the House.

— Curley Company has added Chelsea Echavarria, Pheniece Jones and Kate Urbach as vice presidents and Gloria Funes as creative director.

24 FUND (TEAM 24 PAC, Indiana Republican State Committee, Inc.)

FRATTO VICTORY FUND (MARIO PAC, Mario Fratto for Congress)

Kim Schrier Victory 2024 (Rep. Kim Schrier (D-Wash.), Washington State Democratic Central Committee)

Democrats Who Win (Hybrid PAC)

Home Owners America Stand Up (Super PAC)

MARIO PAC (Leadership PAC: Mario Fratto)

Parry Labs Holding Company, LLC Political Action Committee (Parry PAC) (PAC)

Vote Planned Parenthood Northern California, a Project of Planned Parenthood Northern CA Action Fund (Super PAC)

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Alva Elliott Partners, LLC: Hanwha Q Cells America Inc.

Anndyl Policy Group, LLC: Samsung Electronics America, Inc.

Baker Donelson Bearman Caldwell & Berkowitz /The Daschle Group: Blastone

Baker Donelson Bearman Caldwell & Berkowitz /The Daschle Group: Lite Run

Baker Donelson Bearman Caldwell & Berkowitz /The Daschle Group: Medify Air

Bgr Government Affairs: Marquis Management

Boundary Stone Partners: Bush Brothers & Company

Capitol Hill Consulting Group: Elevance Health, Inc

Cassidy & Associates, Inc.: California Forever LLC

Cassidy & Associates, Inc.: Equitrans Midstream Corporation

Covington & Burling LLP: Samsung Semiconductor Inc. (Ssi)

Holland & Knight LLP: Mothering Justice

Holland & Knight LLP: Viola'S House

Horizon Government Affairs: Interwell Health

Horizon Government Affairs: Panoramic Health

Horizon Government Affairs: Strive Health

Horizon Government Affairs: US Renal Care

Icebreaker Strategies, LLC: Firestorm Labs Inc

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Klein Law Group Pllc: Coalition For Alt. To Letter Of Credit

Kma Zuckert LLC: Kongsberg Satellite Services As

Monument Advocacy: South Dakota Corn Growers Association

Mr. Joe Miklosi: Logan County, Colorado

Mr. Joe Miklosi: Partners Of The Americas

Mr. Joe Miklosi: Wray Community Hospital

Powers Pyles Sutter & Verville, P.C.: Valley Presbyterian Hospital

Pyxis Partners, LLC: American Liver Foundation

Resolution Public Affairs, LLC: Novartis

Sternhell Group: Ally Financial

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S. Vaca & Associates, LLC: Stratom, Inc.

Team Subject Matter, LLC (Fra Subject Matter): Eyeo Gmbh

Ten Government Strategies, LLC: Bryan University

Ten Government Strategies, LLC: Sonoran Desert Institute

Terrapin Strategy Inc.: Senior Healthcare Innovation Consortium, Inc.

The Consilio Group: Istormwater LLC

The Mckeon Group, Inc.: Jariet Technologies

The Smith-Free Group, LLC: Charm Industrial

Thorn Run Partners: Alora Pharmaceuticals, LLC

Thorn Run Partners: Association Of Air Medical Services

Thorn Run Partners: Gopher Resource

Thorn Run Partners: Indeed, Inc.

Thorn Run Partners: Liquidia Technologies, Inc.

Thorn Run Partners: Veeco Instruments Inc.

Tiber Creek Group: Cox Media Group

Valoon LLC: Trex Enterprises Corporation

Washington Strategic Consulting: Academy Of Doctors Of Audiology

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Big Fire Law & Policy Group, LLP: Mesa Grande Band Of Mission Indians

Big Fire Law & Policy Group, LLP: Oglala Lakota Housing Authority

Big Fire Law & Policy Group, LLP: Winnebago Tribe Of Nebraska

Blue Mountain Strategies: Swingtree LLC

Brownstein Hyatt Farber Schreck, LLP: Virtu Financial, Inc.

Brownstein Hyatt Farber Schreck, LLP: Wilmer Hale Obo Abc Technologies Holdings Inc.

Brownstein Hyatt Farber Schreck, LLP: Ys Garments, LLC Dba Next Level Apparel

Cassidy & Associates, Inc.: First Cobalt Corp.

Cassidy & Associates, Inc.: Perkins Coie On Behalf Of Mountain Valley Pipeline, LLC

Centerpoint Energy: Centerpoint Energy

Davis & Harman LLP: Hueler Investment Services, Inc.

Haley & Associates: Sun-Maid Growers Of California

Hawley LLC: Mla Associates On Behalf Of The Espy Corporation

Hogan Lovells US LLP: America'S Community Airline Coalition

Hogan Lovells US LLP: Hidden Level, Inc.

Hogan Lovells US LLP: United Services Automobile Association

Lne Group: University Heights

Mcguirewoods Consulting (A Subsidiary Of Mcguirewoods LLP): Kaleo

Rising Tide Associates: International Textile Group

R&R Partners, Inc.: Smart Wires Inc.

Theresa Pugh Consulting, LLC: Transformer Manufacturing Association Of America

Thorn Run Partners: Alliance For Cell Therapy Now

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Upstream Consulting: Nextmed Holdings

Vitello Consulting: Carrollton Regional Medical Center

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