Tuesday, May 4, 2021

Cruz Confesses Red Team Loves PEU

Politicians Red and Blue love PEU (private equity underwriters).  Storied private equity firms prize their political connections.  Senator Ted Cruz (R-TX) shed light on this unseemly side of politics.

Cruz warned that CEOs opposing Republican threats to voting rights will be excluded from his party’s pay-to-play legislative operation — because they’re no longer conservative enough for the GOP.

For example, Republicans will stop accepting donations in exchange for “looking the other way” when corporate bigwigs dodge taxes, Cruz wrote in a stunningly honest admission of his party’s current modus operandi.

“This time,” he wrote, “we won’t look the other way on Coca-Cola’s $12 billion in back taxes owed. This time, when Major League Baseball lobbies to preserve its multibillion-dollar antitrust exception, we’ll say no thank you. This time, when Boeing asks for billions in corporate welfare, we’ll simply let the Export-Import Bank expire.”

That's right, the exercise of corporate free speech will not be tolerated by the Red team.  Trump like payback is the Red team's mantra.  Cruz's anger filled flailing resulted a few self punches, according to former government ethics chief Walter Shaub.

Cruz’s threat is a blatant admission that Republicans are selling corporate donors “access to the government.” In a clear swipe at Cruz’s clueless self-exposure, Shaub noted that most lawmakers have too much “sense” to say it quite so brazenly.

“It’s the part everyone knows: these crooks sell access,” Shaub tweeted. “Others have the sense not to admit it. This is why our republic is broken: Immoral politicians selling power we’ve entrusted to them like it’s theirs to sell.”

Buyers of influence kept private equity's preferred carried interest taxation in place for decades.  Red and Blue politicians catered to The Carlyle Group's David Rubenstein, Blackstone's Stephen Schwarzman, KKR's Henry Kravis and Apollo's Leon Black vs. public opinion.  

Watch for Cancun Cruz's vote on eliminating carried interest taxation.  Will he vote against Trump friend Stephen Schwarzman's PEU interest?