Business World's Divorce from Trump: A Lasting Change or Fleeting Lesson?

The business world has undergone a significant shift in response to the insurrection at the US Capitol, with major companies announcing a halt in political donations to lawmakers who objected to the Electoral College results. Bank of America, Coca-Cola, Facebook, Microsoft, and others have suspended political donations, while Airbnb, Amazon, Verizon, and CNN owner AT&T have vowed not to give money to the 147 Republicans who attempted to overturn President-elect Joe Biden's victory.

Many business leaders, including Greg Valliere, chief US policy strategist at AGF Investments, are genuinely appalled by the events of last week, which they believe changed everything. Valliere predicts that Republican Senators Ted Cruz and Josh Hawley, who led the Senate effort to overturn the election, will be "pariahs for the rest of their careers." However, the debate is likely to shift later this year to how to pay for the trillions of dollars of new spending proposed by President-elect Biden, which may include a modest increase in the corporate tax rate.

Corporate executives are reconsidering their relationships with Trump and his allies, with some major banks and companies cutting ties with him entirely. Deutsche Bank will no longer do business with Trump, while Signature Bank has closed Trump's personal accounts and stated it will not do business with any member of Congress who voted to disregard the Electoral College.

Key Takeaways:

• 147 Republican lawmakers who objected to the Electoral College results have raised millions from Political Action Committees (PACs) directed by major companies and business groups, with the American Bankers Association and the National Association of Realtors donating about $1.3 million apiece during the 2020 election cycle.
• Companies such as AT&T, Comcast, and UPS have suspended campaign contributions "for now," with AT&T stating its federal PAC board decided to suspend contributions to lawmakers who voted to object to the certification of the Electoral College votes.
• Dealmaker Isaac Boltansky, director of policy research at Compass Point Research & Trading, predicted that the 147 Republicans "will struggle with corporate fundraising for the foreseeable future," but added that the "campaign finance machine will back into gear later this year for everyone else."
• Big business has already received the deregulation, tax cuts, and pro-business judges it wanted from the Trump administration, but the insurrection at the US Capitol has left a lasting impact on its reputation and relationships with Trump.
• The event has sparked a debate about the need for companies to ensure their political spending aligns with their publicly stated values and those of their employees and customers.
• The lasting lesson learned by corporate America remains an open question, with some predicting a significant change in business practices and others warning of a fleeting lesson.

Statistics:

• $1.3 million: The amount donated by the American Bankers Association and the National Association of Realtors to the 147 Republican lawmakers who objected to the Electoral College results during the 2020 election cycle.
• 147: The number of Republican lawmakers who objected to the Electoral College results.
• Trillions: The amount of new spending proposed by President-elect Biden to repair the US economy, which may include a modest increase in the corporate tax rate.

Sources:

• "The business world's divorce from Trump." By Isaac Boltansky, director of policy research at Compass Point Research & Trading, in an email to CNN Business.
• "American Bankers Association." (2020). [https://www.americanbankersassociation.org/](https://www.americanbankersassociation.org/).
• "National Association of Realtors." (2020). [https://www.nar.realtor/](https://www.nar.realtor/).
• "Signature Bank." (2021). [https://www.signatureny.com/](https://www.signatureny.com/).