The National Association of Manufacturers (NAM) launched a seven-figure nationwide TV and digital ad campaign Wednesday urging Democrats to reject corporate tax increases in their multi-trillion dollar social spending package.
“Tell Congress: keep manufacturing strong in America and say no to new taxes,” the ad tells viewers.
NAM and several other influential business lobbying groups are airing last-minute ads opposing corporate tax hikes as Democrats scramble to come to a deal on their reconciliation bill, which would make huge investments in climate, child care and education, by Oct. 31.
Democratic lawmakers had hoped to raise the top corporate tax rate from 21 to 26.5 percent to pay for part of the spending package. They’re now exploring alternative funding measures after Sen. Kyrsten SinemaKyrsten SinemaDemocratic frustration growing over stagnating voting rights bills Key senators to watch on Democrats' social spending bill Pragmatic bipartisanship – not hard left intolerance – is Democrats' surest path back to power MORE (D-Ariz.) announced that she wouldn’t support a tax rate increase.
Keeping corporate tax hikes out of the reconciliation package is the top priority for business groups. NAM found that 9 in 10 of its members would find it more difficult to expand their operation and invest in new equipment if they have a higher tax burden.
“Leaders in Congress should be focused on policies that keep our sector strong—like the bipartisan infrastructure bill—not tax increases that will cost us American manufacturing jobs,” NAM President and CEO Jay Timmons said in a statement.
While Democrats have scrapped the increase to the corporate tax rate for now, they’re exploring other revenue raisers that will draw opposition from business groups.
Democrats this week unveiled a 15 percent minimum tax on corporate profits for about 200 companies with more than $1 billion in profits. Manufacturers, which benefit from lucrative tax deductions to expand their operations, would be among the hardest hit by the measure.
Democrats' tax proposals have drawn a flurry of lobbying from the nation's largest companies and their trade groups. Through the first three quarters of 2021, roughly 6,200 lobbyists reported working on tax issues, up from less than 5,900 lobbyists at the same point last year, according to data from money-in-politics watchdog OpenSecrets.