LOCATION/TYPE

NEWS HOME

[ exact phrase in "" • results by date ]

[ Google-powered • results by relevance ]


Archive
RSS

Add NWW headlines to your site (click here)

Get weekly updates

WHAT TO DO
when your community is targeted

RSS

RSS feeds and more

Keep Wind Watch online and independent!

Donate via Paypal

Donate via Stripe

Selected Documents

All Documents

Research Links

Alerts

Press Releases

FAQs

Campaign Material

Photos & Graphics

Videos

Allied Groups

Wind Watch is a registered educational charity, founded in 2005.

News Watch Home

Baucus rewards ex-staffers with tax breaks for their clients 

General Electric may have been the biggest winner from the cliff deal. GE makes more wind turbines than any other U.S. company, and it lobbied hard for extension of the wind production tax credit. But more important for the multinational conglomerate was an arcane-sounding provision that became Section 222 of Baucus' bill and then Section 322 of the cliff bill: "Extension of subpart F exception for active financing income." In short, this provision allows multinationals to move profits to offshore financial subsidiaries and thus avoid paying U.S. corporate income taxes. This is a windfall for GE: The exception played a central role in GE paying $0 in U.S. corporate income tax in 2011 when it made $5.1 billion in U.S. profits. Peter Prowitt, formerly Baucus' chief of staff, is now an in-house lobbyist and VP at GE. GE filings show Prowitt on the lobbying teams that won wind-tax credits, electric-vehicle tax credits, and "Extension of Subpart F Deferral for Financial Services."

Credit:  Timothy P. Carney, Senior political columnist | The Washington Examiner | January 6, 2013 | washingtonexaminer.com ~~

Tax breaks for Hollywood, NASCAR, windmills, algae and multinational corporations ended up in the “fiscal cliff” bill thanks to President Obama, according to Senate Republican sources. But they were spawned by a web of lobbyists, donors and staffers surrounding Democratic Sen. Max Baucus of Montana.

Baucus’ Finance Committee passed a bill in August extending 50 expiring deductions and credits for favored industries. At Obama’s insistence, the Baucus bill was cut and pasted word for word into the cliff legislation. Set aside for a moment how this contradicts Obama’s talk about “fair shares” and the need to diminish the influence of lobbyists, and look at what this raft of tax favors shows us about the Baucus Machine.

Pick any one of the special-interest tax breaks extended by the cliff deal, and you’re likely to find a former Baucus aide who lobbied for it on behalf of a large corporation or industry organization.

General Electric may have been the biggest winner from the cliff deal. GE makes more wind turbines than any other U.S. company, and it lobbied hard for extension of the wind production tax credit. But more important for the multinational conglomerate was an arcane-sounding provision that became Section 222 of Baucus’ bill and then Section 322 of the cliff bill: “Extension of subpart F exception for active financing income.”

In short, this provision allows multinationals to move profits to offshore financial subsidiaries and thus avoid paying U.S. corporate income taxes. This is a windfall for GE: The exception played a central role in GE paying $0 in U.S. corporate income tax in 2011 when it made $5.1 billion in U.S. profits.

Peter Prowitt, formerly Baucus’ chief of staff, is now an in-house lobbyist and VP at GE. GE filings show Prowitt on the lobbying teams that won wind-tax credits, electric-vehicle tax credits, and “Extension of Subpart F Deferral for Financial Services.”

Two weeks before the Finance Committee hearing during which the bill was hashed out, GE’s political action committee topped off its contributions to Baucus’ Glacier PAC with a $2,000 check, according to the PAC’s federal filings. This brought GE’s contributions to Baucus’ PAC to the legal maximum of $10,000 for the election cycle.

Baucus alumna Shannon Finley also won goodies for her clients, lobbying filings indicate. Finley was a longtime Baucus adviser, and now she’s a lobbyist at Capitol Counsel, a tax-heavy K Street firm that played a major role in crafting Baucus’ extenders bill. Finley’s clients included the American Wind Energy Association, which led the fierce yearlong push to save its tax credit.

Liquor giant Beam Inc. also hired Finley and her colleagues to protect its special tax carveouts for distilling Cruzan rum in the Virgin Islands. Other Finley clients who won with Baucus’s extenders bill include the Edison Electric Institute (various credits for plug-in electric vehicles) and Fortune Brands Home & Security (tax credit expansions for “residential energy efficient property”).

Another hub of the Baucus-K Street combine is the lobbying firm K&L Gates. Two Baucus alumni there lobbied Baucus on the tax package: former Finance Committee chief counsel and Baucus legislative director Michael Evans and Patrick Heck, who served as Baucus’ senior tax policy adviser.

Heck, according to lobbying filings, lobbied on Baucus’ bill on behalf of Burlington Northern Santa Fe Railroad, owned by billionaire Obama fundraiser Warren Buffett. Baucus’ bill extended the tax credits for railroad track maintenance, as well as for “bonus depreciation,” another lobbying priority for Heck’s team.

The algae industry (yes, there is such a thing) hired Evans, who helped extend the biofuels tax credit and expand the subsidy to include ethanol made from algae. Sapphire Energy and the Algal Biomass Organization were Evans’ clients.

Prowitt, Finley, Heck and Evans are only a few examples. Baucus’ chief counsels, legislative directors and chiefs of staff litter K Street. They make sure their clients get their tax carveouts, and they make sure their former boss gets his campaign contributions.

“He runs an old-school machine,” one K Street lobbyist told me. “They all work him for five or 10 years, and then they go downtown. They all help him get re-elected. They’re all incredibly loyal.”

Former Baucus tax counsel Roger Blauwet gave to Baucus’ Glacier PAC while lobbying to extend the research and development tax credit for drugmaker Sanofi-Aventis – including a $2,500 gift two days before Baucus’ markup. Finley gave to Glacier PAC, as did Buffett’s BNSF.

As Obama says, everyone has to pay their fair share – even if that’s a lobbying fee to someone in Max Baucus’ inner circle.

Source:  Timothy P. Carney, Senior political columnist | The Washington Examiner | January 6, 2013 | washingtonexaminer.com

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial educational effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

Wind Watch relies entirely
on User Funding
   Donate via Paypal
(via Paypal)
Donate via Stripe
(via Stripe)

Share:

e-mail X FB LI TG TG Share


News Watch Home

Get the Facts
CONTACT DONATE PRIVACY ABOUT SEARCH
© National Wind Watch, Inc.
Use of copyrighted material adheres to Fair Use.
"Wind Watch" is a registered trademark.

 Follow:

Wind Watch on X Wind Watch on Facebook

Wind Watch on Linked In Wind Watch on Mastodon