Yellen pitches Chamber on corporate tax hike — Feds asking questions about Giuliani's Romania work — WilmerHale adds former Treasury official

From: POLITICO Influence - Tuesday May 18,2021 08:09 pm
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By Caitlin Oprysko

Presented by

With Daniel Lippman

WELL, IT WAS WORTH A SHOT: Treasury Secretary Janet Yellen this morning took the Biden administration’s push to hike taxes on corporations into the lion’s den, so to speak, pitching the idea to attendees of a virtual U.S. Chamber of Commerce event on the economic recovery.

— “We're confident the key investments and tax proposals” in President Joe Biden’s infrastructure and jobs plan “will enhance the net profitability of our corporations and improve their global competitiveness,” Yellen said during her keynote. “We hope business leaders will see it this way, and support the jobs plan.”

— The Treasury secretary framed the president’s proposed increase of the corporate rate to 28 percent from 21 percent amounted merely to business “bearing its fair share,” while arguing the shift is aimed at simply returning the “corporate tax towards historical norms.” She added: “At the same time, we want to eliminate incentives that reward corporations for moving their operations overseas and shifting profits to low-tax countries.”

— She also used her time in front of the business lobby, which has vehemently opposed a Democratic bill to overhaul labor laws, to decry an “erosion in labor’s bargaining power,” saying a decline in unionization was in part because of wage stagnation for lower income workers and a yawning income inequality gap. And Yellen encouraged executives to embrace competition from abroad, while vowing to create an even playing field for American companies. “Let others innovate and advance,” she said. “Let us seek to advance faster and further. We ultimately benefit from the positive spillovers of innovation, wherever it occurs.”

— Unsurprisingly, Chamber CEO Suzanne Clark threw cold water on Yellen’s plea for the business community’s backing on Biden’s proposed pay-fors. “It's always an honor to hear from the Treasury secretary, including and maybe even especially when we disagree, as we do on taxes,” Clark said following Yellen’s remarks, arguing that while the Chamber strongly wants an infrastructure deal, “the data and the evidence are clear, the proposed tax increases would greatly disadvantage U.S. businesses and harm American workers, and now is certainly not the time to erect new barriers to economic recovery.”

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Good afternoon and welcome to PI. Send lobbying tips, gossip and any fun influence-industry spotteds (now that things are beginning to open up more): coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

IT’S NOT JUST UKRAINE: POLITICO’s Betsy Woodruff Swan and Daniel Lippman report that “Justice Department investigators have asked questions about Rudy Giuliani’s work connected to Romania, according to two people familiar with the probe into former President Donald Trump’s personal lawyer,” that resulted in a raid on Giuiliani’s Manhattan apartment and office last month.

— Investigators are looking into “whether Giuliani violated the law in his work for foreign entities, including the Foreign Agents Registration Act. Giuliani has said that he ‘never, ever represented a foreign national’ and says he specifically puts in his contracts that he won’t lobby on behalf of or represent foreign entities.”

— “If Rudy’s Romania work was solely to influence government officials there and did not target American audiences, then he would not have been required to disclose the work to the Department of Justice under the Foreign Agents Registration Act.”

WILMERHALE ADDS FORMER TREASURY OFFICIAL: Jonathan Blum, who until this year served as deputy assistant secretary for legislative affairs at Treasury, is joining WilmerHale’s public policy and legislative affairs group. At Treasury Blum worked on last spring’s mammoth CARES Act, including on the provisions that established the Fed’s emergency lending facilities and programs to help keep the airline industry afloat.

— Before joining WilmerHale, Blum was an economic policy adviser to Sen. Todd Young (R-Ind.), one of the chief sponsors of the Senate’s bipartisan bill aimed at boosting U.S. competitiveness with China and for which Blum focused on issues related to financial markets.

 

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S-3 MARKS A DECADE: S-3 Group, the lobbying and public affairs firm started by former Podesta Group partner John Scofield and now-Boeing exec Jeff Shockey , marked its 10th anniversary today. “Our first operating agreement, in all honesty, was the back of a cocktail napkin at the Lucky Bar,” Scofield told PI in an interview. “And now we've got … a full bipartisan team” that’s 25 people strong.

— Scofield added that he’s enjoyed watching the industry shift from a “law firm model” to more of an integrated one combining digital and social media campaigns with policy expertise, quipped that he’s thankfully no longer being plagued by having invoices or lobbying disclosures rejected for lack of compliance, and is most proud of S-3’s reputation downtown and elsewhere.

STEFANIK’S K STREET ORBIT: As Rep. Elise Stefanik (R-N.Y) ascends to House GOP leadership, she does so “without a large network of lobbyists in Washington,” Bloomberg’s Megan Wilson reports. “That’s about to change thanks to her role as GOP conference chair.”

— “As much as lobbyists will want to reach out to Stefanik, she’ll in turn likely reach out for help. ‘She understands the value of having folks downtown who are on the same page as you, who are chatting with clients and other downtown folks and reinforcing the message that you are putting out to your colleagues,’ said [Parker Hamilton] Poling, a partner at Harbinger Strategies who previously served as executive director of the National Republican Congressional Committee and chief of staff to then-Chief Deputy Whip Patrick McHenry (R-N.C.).”

— “Stefanik’s former chief of staff Lindley Kratovil Sherer works at top lobbying firm Invariant,” and her former deputy chief of staff, Julia Angelotti, is a lobbyist at Merchant McIntyre & Associates . “But as for her breadth of connections, advocates who know Stefanik say her committee assignments — Intelligence, Education and Labor, Armed Services — hadn’t made her a focus for lobbyists. They don’t have the same policy reach and broad K Street appeal as panels such as the Energy and Commerce or Ways and Means committees.”

UBER, LYFT RIDES TO VACCINATIONS SPOTLIGHT WHITE HOUSE’S TIES: “Last week, when the White House announced an agreement with Uber and Lyft to offer free rides to vaccine sites as part of President Joe Biden's aim to inoculate 70% of Americans against the coronavirus by the Fourth of July, the partnership drew praise but also questions,” ABC NewsSoo Rin Kim and Lucien Bruggeman report.

— “Among those who have in the past accepted payments from the Silicon Valley-based firms are” national security adviser Jake Sullivan, deputy chief of staff Jen O’Malley Dillon, press secretary Jen Psaki and State Department undersecretary Victoria Nuland , “and given these connections, ethics experts say it is an arrangement that warrants scrutiny.”

— “A White House official told ABC News” that the “partnerships came to fruition solely from brief phone calls between White House vaccine coordinator Andy Slavitt's team and the CEOs of the companies, with no involvement from other members of the administration who had worked for the companies or registered lobbyists working on behalf of the companies.”

RIGHT ON CUE: Matt Olsen, Uber Technologies Inc.’s chief trust and security officer and a veteran of Washington’s national security circles, is expected to be nominated to serve as head of the Justice Department’s National Security Division,” the office that — among other things — oversees FARA enforcement, The Wall Street Journal’s Dylan Tokar reports.

 

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Jobs Report

Erin Greten has joined Baker Donelson as of counsel on the firm's Disaster Recovery and Government Services Team. Greten was most recently career senior executive chief counsel of the First Responder Network Authority and is a FEMA alum.

Michele Pearce has joined Covington & Burling’s public policy practice. She was previously acting general counsel of the Department of the Army.

Michael Long is joining S-3 Group as a principal on its government affairs team, Playbook reports. He previously was senior adviser and director of member services for Speaker Nancy Pelosi.

Jason Dunn has rejoined Brownstein Hyatt Farber Schreck ’s Litigation Department in Denver as a shareholder. He was previously U.S. attorney for the District of Colorado.

 

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New Joint Fundraisers

Max Miller Victory (Max Miller for Congress, Save America, Dependable Conservative Leadership PAC)
NOEM VICTORY FUND (Gov. Kristi Noem (R-S.D.), Lt. Gov. Larry Rhoden (R-S.D.), Keeping Republican Ideas Strong Timely & Inventive, SD Strong Leadership PAC, South Dakota Republican Party)
Silver State Victory 2022 (Sen. Catherine Cortez Masto (D-Nev.), Rep. Susie Lee (D-Nev.))

New PACs

American Digital Currency Blockchain PAC (PAC)
The Bull Moose Project (PAC)
Grand Opportunity America PAC (Super PAC)
Winners PAC (Super PAC)

New Lobbying Registrations

Alston & Bird LLP: Coherus Biosciences, Inc.
Aurora Strategic Advisors: Three Rivers Park District
Capitol Counsel, LLC: Hq Energy Services (US) Inc.
Invariant LLC: Aeroseal
Johnston Group, LLC: East Adams Rural Healthcare
Kadesh & Associates, LLC: City Of Los Angeles
Kadesh & Associates, LLC: Contra Costa Community College District
Kadesh & Associates, LLC: Five Point Operating Company
Klein/Johnson Group: Digital Currency Group
Linchpin Strategies, LLC: Hippy International
Mehlman Castagnetti Rosen & Thomas, Inc.: Rock Central
Mr. Joe Miklosi: Dr. Reginald Boulos
Roberti Global (F/K/A Roberti White, LLC): Elec825 (Engineers Labor-Employer Cooperative)
Roberti Global (F/K/A Roberti White, LLC): Phrma (Pharmaceutical Research & Manufacturers Of America)
Sconset Strategies, LLC: South Florida Admiralty Trial Lawyers Association
Subject Matter (Fka Elmendorf Ryan): Corning Incorporated
Tiber Creek Group: Primerica, Inc.
Tobenkin Group: Houston Parks Board

New Lobbying Terminations

1607 Strategies, LLC: Navient

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