sen kirsten cinema’s Close ties to private equity industry giants, whose agenda he has consistently advocated in Congress, continue to hinder his re-election campaign. In 2018, the first year he was elected to the Senate, he was backed by powerful private equity executives. Leon Black, then CEO of Apollo Global Management, one of the largest such companies in the world, was one of them.
now black is back HeadlinesThis time a 16-year-old girl is accused of raping a 16-year-old girl in the home of Jeffrey Epstein, a serial sex trafficker whom Black financed more than $150 million.
Black’s support for Sinema is a window into the Devil’s Bargain as part of a once radical left-wing cut to rise through the ranks. Wall Street financing enabled him to get ahead even as it put him in a politically unpopular position, shielded indefinite private equity gifts in the tax code, and linked him to unsavory characters, always at risk of becoming a public relations liability.
In 2018, Black and his wife together donated $5,400 to the cinema’s campaign, the maximum legal contribution at the time. Three years later, Black was removed from the top position at Apollo Global Management, the firm he helped to establish, after it was revealed that he had bribed disgraced financier Epstein to the tune of $150 million for estate planning and tax services. paid more. The Senate Finance Committee is currently Test that payment and whether it involved tax evasion.
During its 2018 bid, Cinema received substantial donations from others in the private equity world, including a few dozen senior Blackstones. managersban officialsand Goldman Sachs the financiersBut she received a lot of funding from the Emily’s List political action committee and Google employees.
However, after he entered office, what had begun as a smart bet on cinema by private equity leaders like Black quickly turned into a full-scale industry-promoting craze, private equity and investment The Firmans seized on him as a powerful ally in battle. Keep their status quo. They have since become its strongest financial anchor, with hundreds of employees of the largest Wall Street firms donating millions to the cinema’s campaign. All told, the cinema has raised more than $3 million from investment and private equity firms over the past six years. Cinema’s office did not respond to questions about his affiliation with Black and Apollo Global Management.
According to campaign finance data Analyzed by Open Secrets, Apollo Global Management employees represented the single largest corporate donor base to a campaign committee of cinema between 2017 and 2022, contributing a combined $172,025. Officials who have contributed since his election to the Senate include the chairman of KKR, one of the world’s largest private equity firms; Top Director of The Carlyle Group; Blackstone CEO; and dozens of other senior investment managers.
as previously intercepted informed ofCinema has maintained close ties to the private equity industry, even interning as a senator – then at a winery owned by private equity mogul Bill Price, co-founder of private equity giant TPG Capital I have also done fundraising work.
His ease with industry has guided him against major Democratic priorities, including those designed to raise taxes on the wealthy in an effort to balance the federal budget. Cinema’s insistence has spoiled his position in his own state of Arizona. After leaving the Democratic Party, he now faces an uphill re-election campaign; As an independent candidate, she will compete against both Democrats and Republicans in the general election. even as Private equity cash flow continues In Campaign Treasures of the Cinema, his Democratic opponent, Representative Ruben Gallego humiliated In the first quarter of this year, it was suggested that Fury would have a lasting effect on his continued loyalty to corporate donors.
President Joe Biden’s The massive spending bill, the Inflation Reduction Act, was a turning point in the growing unpopularity of the cinema. To the cinema, Senator Joe Manchin, DW.Va. With, wooed for his yes vote. The senator from Arizona was eventually replaced by Sen. Chuck Schumer, D.Y. who agreed to eliminate many of the bill’s taxation priorities, most notably efforts to close the interest tax loophole.
This is a tax exemption that allows hedge fund managers and private equity executives to pay tax on their income as tax-deferred capital gains, subject to much lower rates than standard income. removing the flaws would have produced a estimated $14 billion in revenue over 10 years.
The American Investment Council, which represents companies including Apollo, Blackstone, Carlyle and KKR, strongly opposed the reform efforts, media blitz Cinema and Senator Mark Kelly of Arizona are being pressured to keep the interest tax loophole intact – and in turn pressure is being put on their officials’ salaries.
Former Pennsylvania senator Pat Toomey, who is now on the board of Apollo Global Management, also played a part in the effort to preserve the tax exemption. Before the passage of the bill, he told Press that he was not “speculating about what.” [Sinema] going to do it but I know there are some provisions in this area to which she has objections [about] in the past,” adding, “I look forward to chatting with him this week.”
The protection of the interest tax loophole practiced by Cinema ensured that private equity billionaires like Black would continue to amass massive wealth with little interference from the IRS. Senate committee is probing Black’s finances is charged The former executive consulted with Epstein to avoid tens of millions in taxes by making payments that were “obscenely large; Much more than Black was paid to other financial advisors and more than the average compensation of Fortune 500 CEOs at the time.
Last week, Sen. Ron Wyden, D-Ore., sent a Letter Black was asked for additional information about the payment. The request “is part of an ongoing set of investigations by the committee into ways by which ultra-high net worth individuals evade or evade paying federal taxes, including gift and estate taxes,” Wyden wrote.
A few days later, a woman filed A lawsuit against Black, accusing him of raping her at Epstein’s New York City townhouse in 2002, when she was a teenager. The petition, filed in Manhattan federal court, also alleges that Epstein’s confidant and convicted sex trafficker Ghislaine Maxwell trafficked the then 16-year-old girl to the location. Black’s lawyer denied the allegations and that the plaintiff holds a “vendetta” against him. The trial is the third allegation of rape against Black and the second involving property owned by Epstein. (The billionaire has denied all such allegations, and there is a pending trial related to a second alleged rape at Epstein’s home.)
Last month, Black agreed to $62.5 million agreement with the US Virgin Islands to avoid possible prosecution in connection with the US territory’s ongoing investigation into Epstein’s sex trafficking operation. This month, he continues to block investigators in the Senate.