Axios Sneak Peek: The coming corporate tax hike ... A Democratic two-step to filibuster reform

Plus: Top senators offer Biden cover on Afghanistan | Wednesday, March 17, 2021

Open in app View in browser   Presented By The U.S. Global Leadership Coalition   Axios Sneak Peek By Alayna Treene, Hans Nichols and Kadia Goba ·Mar 17, 2021 Welcome back to Sneak. The tragic events in Atlanta quickly rippled all the way to Congress and the White House. ⚡ Situational Awareness: The Treasury Department announced the federal tax-filing deadline is being moved from April 15 to May 17 this year. Filers still have to check with their states about any change in their local tax deadline. The House voted to award the Congressional Gold Medal to police officers who defended the U.S. Capitol on Jan. 6. Dick Hoyt, who annually pushed his son Rick, who has cerebral palsy, in the Boston Marathon, died today at age 80. Today's newsletter — edited by Glen Johnson — is 799 words, a 3-minute read.     1 big thing: The coming corporate tax hike Sen. John Hickenlooper. Photo: Amanda Andrade-Rhoades/Bloomberg via Getty Images   Democrats are zeroing in on raising the corporate tax rate from its current 21% to 28% as one of the easiest ways to find new revenue for an infrastructure package, Axios' Hans Nichols reports. The big picture: While many senators are signaling that President Biden's next big-ticket bill must come with a way to pay for it, the White House and its Democratic allies are growing confident they can get there, in part, by increasing corporate taxes. "We should pay for this once-in-a-generation infrastructure package, " said Sen. John Hickenlooper (D-Colo.) told Axios. "I'm eager to work with my colleagues on how to achieve this goal, including responsibly setting the corporate tax rate." Flashback: Prior to the Trump administration, the business community was pushing to lower the corporate rate from 35% to 25%. President Trump dropped it to 21%. Go deeper.     2. The Democrats' two-step to filibuster reform Illustration: Sarah Grillo/Axios   Some Democrats hope they can use the pending fight over their massive voting rights package to convince more skeptical Democrats to back filibuster reforms, Axios' Alayna Treene has learned from conversations with lawmakers and their aides. Why it matters: Many Democrats were thrilled after Biden said Tuesday night he supports the return of the "talking filibuster" — but they're still a long way from any sort of meaningful change to the rule. What we're hearing: Some Democrats think that if Republicans repeatedly refuse to play ball on substantial legislation or insist on changes that would kill the Democrats' legislation altogether, they may be able to enlist more of their colleagues. The key marker is S. 1, the Senate's version of H.R. 1 — ceremonial titles for a bill the majority leadership deems to be that Congress' top priority. Top Senate aides tell Axios a big part of their pitch to members reluctant to alter the filibuster: Do they really want to be remembered as standing in the way of the administration's ability to enact significant policy when Democrats not only control the White House but both chambers of Congress? Go deeper.     3. Top Democrats offer Biden cover on Afghan troop withdrawal Sen. Jack Reed (left) and Sen. Bob Menendez. Photo: Tom Williams/CQ Roll Call   Two powerful Senate chairmen are questioning plans to withdraw all U.S. troops from Afghanistan by May 1, providing potential cover for Biden to change his mind as he faces a rapidly approaching deadline, Alayna also reports. Why it matters: The war is America's longest and most costly. Former President Trump negotiated a departure timetable with the Taliban, and his successor has indicated he's ready to honor that commitment. Sen. Bob Menendez (D-N.J.), chairman of the Senate Foreign Relations Committee, and Sen. Jack Reed (D-R.I.), chairman of the Armed Services Committee, think Biden may have to reconsider. Sen. Chris Coons (D-Del.), one of Biden's closest allies in Congress, also told Axios, "This is weighing very heavily" on the president. "He's having a hard time." Tearing up, Coons recalled the two attending funerals for soldiers from their home state who had been killed in Afghanistan. Go deeper.     A message from The U.S. Global Leadership Coalition Report on reports: a roadmap for U.S. global leadership     What do 100 policy reports, 6 global challenges and America's kitchen table have in common? The need for strong diplomacy and development. Spoiler alert – our latest report finds more common ground on these solutions than you might think. Read the latest consensus on America's foreign policy.     4. Asian American representation in Congress at record high Data: Brookings Institution, U.S. House and Senate; Note: Data does not include non-voting members. Chart: Sara Wise/Axios The number of Asian Americans elected to Congress has increased significantly through the years and is currently at a record high, but the total representation still only amounts to about 3% of the membership, Axios' Sarah Mucha reports. Why it matters: Rep. Judy Chu (D-Calif.), chairperson of the Congressional Asian Pacific American Caucus, has made it her mission to increase Asian American and Pacific Islander representation across the spectrum of government. CAPAC has had meetings with the White House and throughout the administration to hold President Biden to his promise of building a federal branch reflecting the diversity of the country, a caucus aide told Axios. There are several members of the community represented at the highest levels of President Biden's administration, including Vice President Kamala Harris. She made history as the first South Asian American elected to that office. On Wednesday, the Senate also confirmed Katherine Tai, the daughter of Chinese immigrants, to serve as U.S. trade representative, making her the first woman of color to serve in the role.     5. Va. candidate's COVID charity shrouded key information Illustration: Sarah Grillo/Axios   Virginia gubernatorial candidate Pete Snyder boasted about a cash haul for his COVID-19 relief nonprofit last year that was more than five times what it had estimated raising in a sworn statement to the IRS, Axios' Lachlan Markay has learned. Why it matters: The Virginia 30 Day Fund's mission is central to Snyder's political brand. It's a calling card for the Republican in a crowded primary in a bellwether off-year race. But early, apparently erroneous disclosures to the IRS allowed the group to shield from public view key information about its operators, operations and finances. The IRS filing, submitted under penalty of perjury, certified the group had not raised, and did not expect to raise, more than $50,000 per year during its first three years. Nonprofits that bring in more than $50,000 per year are required to provide far more granular information to the IRS, including details about executive compensation, conflict of interest policies, vendor contracts and business relationships among the groups' directors. Between the lines: By mid-June, the Virginia 30 Day Fund had raised nearly $2.8 million, according to Snyder, who in January stepped down from his position with the group and announced his run for governor. Go deeper.     6. Pic du jour Photo: Erin Scott/The New York Times/Bloomberg via Getty Images   President Joseph Robinette Biden Jr., son of Catherine Eugenia Finnegan, marks St. Patrick's Day by participating in a virtual bilateral meeting with Ireland Prime Minister Micheál Martin. While the annual Friends of Ireland luncheon was virtual this year, House members still received their own live shamrocks from Daniel Mulhall, Ireland's ambassador the the United States. Rep. Dan Kildee (D-Mich.) also tucked his in the breast pocket of his blazer.     A message from The U.S. Global Leadership Coalition A foreign policy roadmap to deliver for American families     When it comes to U.S. global engagement, the consensus is clear on strengthening diplomacy and development. The reason: It matters to Americans' health, safety, prosperity and values. Learn more in our latest Report on Reports: A Roadmap for U.S. Global Leadership.   ☘️ Thanks for making us your St. Patty's Day nightcap! If you want to share a link to this or any of Axios' other free newsletters, click here.   Axios thanks our partners for supporting our newsletters. Sponsorship has no influence on editorial content. 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