The culture wars strain the once unbreakable bond between Republicans and American business – tech2.org

The culture wars strain the once unbreakable bond between Republicans and American business


Republicans and US corporations are on the sidelines.

In the past week alone, American Airlines and the computer company Dell have spoken out vigorously against GOP-led bills that impose voting restrictions at their Texas home base. South Dakota Gov. Kristi Noem, a rising star of the Republican Party, continued to receive criticism for rejecting a bill that would have imposed a ban on transgender athletes in sports, citing the potential impact on results for her state. . And conservatives spent days criticizing “vaccine passports” that some companies believe are necessary to get back to normal.

And then there was Georgia, where the Republican-controlled state House voted narrowly to end a tax break worth millions that Delta enjoys on jet fuel after the airline’s CEO, along with the CEO of Coca-Cola, another major Atlanta-based company, condemned. new voting restrictions in the state. (The GOP-led state Senate did not accept the measure.) On Friday, Major League Baseball pulled this year’s All-Star Game from Atlanta in protest of the same law.

Republicans were outraged.

“Boycott baseball and all the companies that have woken up and are interfering with free and fair elections,” former President Donald Trump said in a statement. “Are you listening to Coke, Delta and all that?”

“Why do we keep listening to these corporate hypocrites who have woken up about tax, regulation and antitrust?” Senator Marco Rubio, Republican of Florida, tweeted.

Such public disputes between companies and members of the Republican Party are becoming more frequent, although the division, arguably one of the most important in American politics and society, has been brewing for years. The shift is the product of a Republican Party increasingly driven by “culture war” issues animating a base strengthened by Trump and corporate powerhouses that are under more pressure than ever to align with the left on voting rights, LGBTQ rights and anti-racists. efforts.

The result is a drain on relations among a Republican Party that for years has advocated for the kinds of libertarian economic policies that have widely benefited these businesses and companies that are using their power to help advance causes of social and racial justice.

“We have long thought and still think about the great institutional drivers of this culture war, as more in American academia, the arts, the media and business have been on the sidelines until recently,” the senator said. retired Pat Toomey, Republican of Pennsylvania. he told NBC News in an interview. He added that, while he does not consider US companies “to be the most important player so far,” companies leaving the bank “can change the dynamics.”

Sen. Pat Toomey, Republican of Pennsylvania, during a hearing before the Congressional Oversight Committee in Washington on December 10.Sarah Silbiger / Pool via Reuters file

This year has seen one flash point after another. The weeks of conservative outrage over the “cancellation” of Mr. Potato Head and Dr. Seuss were not due to government-instituted policies, but to decisions made by toy maker Hasbro and the famous children’s author’s own company to address the issue. inclusion and racism, respectively. The Conservative Political Action Conference in February, long a bastion of economic libertarianism, featured a panel denouncing “The Awakening of American Business.”

“Part of this is a development that has been going on for probably 10 or 15 years,” said David McIntosh, president of the Club for Growth. “The old Reagan coalition, which included the Chamber of Commerce representing business big and small, as the Tea Party movement has really worn off.”

The trend has intensified as the Republican Party absorbs more white voters from the working class and the Democratic Party is finding new success among wealthy suburbanites.

These changes were “exacerbated” under Trump, said a Republican lobbyist, with the party going “more toward this culture war that encourages and excites our voters.”

“Talking about corporate tax cuts and reducing burdensome regulations does not benefit our new voters,” said this person. “I guess it’s not that exciting. It may be exciting for the Republicans in the country club that we lost, but we are losing them.”

However, what it means for politics is less clear, even as some Republicans embrace some left-wing policies like an increase in the minimum wage. Under Trump, Republicans implemented a tax cut that saw much of its profits go to some of these same corporations that are now criticized by conservatives for their social activism. Few Republicans are moving away from the traditional agenda of lower taxes and deregulation, although some prominent Republicans like Sen. Josh Hawley, R-Missouri and Rubio have tried to position themselves as corporate antagonists.

Toomey said he has seen “an increase in economic populism among some Republicans,” with the possibility of a greater “anti-corporate push” if corporations decide to “become part of the left-wing social movement.”

The Pennsylvania Republican said that could lead to Republican lawmakers proposing restrictions on share buybacks, increasing dividend taxes or even a more intense effort to break up big companies. One of the biggest rallying cries on the right is opposition to the US tech giants to take down the platforms of prominent conservatives, even as conservative content continues to dominate on platforms like Facebook.

Toomey, a former president of the Club for Growth, disagrees with such moves.

“I’m still going to fight for the right economic policy, right? I’m not going to say, ‘Well, let’s punish them for their bad behavior,’ because unfortunately the punishment is inflicted on the American people and our economy,” he added. he said. “So I’m not going to be a part of it.”

But Toomey, along with staunch economic libertarians like Senators Rob Portman, Republican of Ohio; Roy Blunt, R-Mo .; and Richard Burr, RN.C., are heading out at the end of their current term. If his successors were Republicans, they may be more aligned with Trump’s politics.

An important test will be how Republicans handle President Joe Biden’s planned tax hike. Among the proposals put forward by the White House is an increase in the corporate tax rate from 21 percent to 28 percent, which is lower than the 35 percent rate that Trump inherited.

Rep. Jim Banks, R-Indiana, suggested that while Republicans are unlikely to vote for tax increases regardless, they may not make much of a fuss about the corporate rate hike.

“I can tell you that I am going to fight like hell to make sure this administration does not eliminate the tax cuts that we passed for individual rates, for working families,” he said. “That’s what I’m focused on.”

One of the biggest fractures in the relationship this year came in the wake of the deadly riots on Capitol Hill on January 6. Many corporations announced that they would no longer make donations to those in Congress who opposed the counting of certified results in certain states where Biden won. . Some said they would stop making political donations through corporate political action committees.

So far, that hasn’t proven too bad for Republicans. Hawley, for example, has seen its fundraising skyrocket in the first quarter of this year when it finds itself on what amounts to a “no-fly list” for some corporate PACs.

Banks, who opposed the Electoral College recount, said local news reports that he has been barred from corporate donations are among the “best” he has received in his home district.

“I couldn’t pay for a better story,” he said.

Some feel it is inevitable that companies backtrack on those commitments. The Republican lobbyist said he was “100 percent” sure that would be the case.

“There are 435 members of Congress,” this person said. “Discarding 147 of them is a difficult way to win an edition.”

Judd Legum, a progressive journalist who has followed corporate giving habits after promises, said he’s not so sure.

“The world is changing,” he said. “There are more conscious consumers and consumers are more conscious of how they spend their money.”

Paul Washington, who heads The Conference Board’s Environmental, Social and Governance Center, which conducts research on behalf of its business members, said that “expectations are just different for businesses now than in the past,” and members of their group does not see that the political and social trends they face will reverse anytime soon.

Ultimately, McIntosh believes that American companies will have to “really take a closer look at what’s in their interest.”

“Are they better off with a party that maybe talks about their social agenda?” he said. “Or are they better off with a party that looks after their economic interests?”



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