by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Sen. Kyrsten Sinema (D., Ariz.) is facing pressure to oppose an international corporate tax hike local businesses say would cripple the state’s economy.
The Biden administration this month joined 130 other countries in a pledge to establish a global minimum 15 percent corporate tax rate, in an effort to eliminate tax havens worldwide. The United States can’t officially join the compact without congressional approval, which House Democrats hope to secure as part of the Biden administration’s $3.5 trillion spending bill. A group of Arizona-based companies sent a letter to Sinema asking her to oppose the tax, which they say would cost Arizona 42,000 jobs and $5.1 billion in its first year.
Sinema is a prime target for groups that oppose the global tax increase. The senator has come out against corporate tax increases and has repeatedly clashed with the White House over the scope of the spending bill. The extended negotiation effort has drawn the ire of progressive activists and Democratic Party leaders, who are exploring a potentially heated primary challenge.
A group of Arizona business leaders began lobbying Sinema in June with a letter calling on her to oppose the global corporate tax increase. The signatories, including American Express and UPS, told Sinema that approving the hike would “hurt our global competitiveness, jeopardize the jobs that we have created in the state, and undermine the benefits we bring to Arizona consumers and to the state’s economy.” …
… Moderate Democrats are lining up in opposition to the global tax increase. This month, Reps. Tom O’Halleran (D., Ariz.), Henry Cuellar (D., Texas), and Lou Correa (D., Calif.) urged Speaker of the House Nancy Pelosi to “pause” the tax.
In a letter obtained by Politico, the congressmen warned Pelosi that the tax “would potentially reduce American competitiveness with their foreign counterparts and result in American job losses.”