Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Political Watchdog Groups Impacting Corporate Tax

Author: Scarinci Hollenbeck, LLC

Date: December 16, 2014

Key Contacts

Back

With an increasing number of Americans feeling disconnected from the political process, it is heartening to hear stories in which public opinion and political watchdog groups have a marked impact on political discourse.

According to Joshua Holland, a reporter for BillMoyers.com, that is precisely what is going on regarding the so-called tax extenders.

The tax extenders are a set of tax breaks and subsidies that have been added into the tax code over the years on a temporary basis. The majority of these cuts apply to businesses, but some are directed at citizens, like the earned income tax credit or the credit for energy-efficient appliances.

Applying these cuts temporarily was intended as a way to allow politicians to test out their effects. Instead of making them permanent, however, legislators have instead chosen to renew them on a temporary basis year after year. This has allowed them to obfuscate their effect on the federal budget and to collect contributions from companies and interest groups lobbying for their renewal.

Influencing the conversation
For the majority of their existence – some since 1981 – little public outcry or fanfare has accompanied these bills’ renewal. This was not the case this year, after two groups – Public Campaign and Americans for Tax Fairness – released a report detailing what these bills do, how much they cost and how much is spent on the lobbying campaign that is pushing them through Congress. The authors pulled data from OpenSecrets to find that 1,359 lobbyists pressed Capitol Hill on the issue between January 2011 and September 2013 – about 10 percent of all registered federal lobbyists. About 58 percent of these lobbyists had worked for Congress or the executive branch at some point.

Writing the report was one thing, but influencing public opinion was another, according to BillMoyers.com.

“We did as much retail work as possible,” Frank Clemente of Americans for Tax Fairness told the news source. “We held press briefings and did one-on-ones with reporters to make sure that they understood the story. It’s like grassroots organizing – you have to do a lot of organizing to get the media engaged on issues like this.”

While challenging, it appears that the authors’ efforts paid off. The recent efforts to make the tax extenders permanent – conspicuously missing breaks for low income families – have been met with extreme public scrutiny. Those breaks may still pass in some form, but at minimum public controversy will prevent them from passing without notice.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"
Understanding Chattel Paper: A Key Component in Secured Transactions post image

Understanding Chattel Paper: A Key Component in Secured Transactions

Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]

Author: Dan Brecher

Link to post with title - "Understanding Chattel Paper: A Key Component in Secured Transactions"
Crypto Compliance: A Comprehensive Guide post image

Crypto Compliance: A Comprehensive Guide

For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Compliance: A Comprehensive Guide"
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"
SPACs Are Back, What You Need to Know post image

SPACs Are Back, What You Need to Know

Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]

Author: Dan Brecher

Link to post with title - "SPACs Are Back, What You Need to Know"
Short Form Merger: Streamlining the Process for Businesses post image

Short Form Merger: Streamlining the Process for Businesses

Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]

Author: Dan Brecher

Link to post with title - "Short Form Merger: Streamlining the Process for Businesses"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!