The rift between Republicans and corporate America is increasing with each passing day and has become a hot-button issue. There are multiple factors at large that are contributing to this increasing tussle between the GOP and corporate America, such as vaccination policies, voting restricting legislation, social issues, climate change issues, LGBTQ rights issues, and progressive tendencies.
This power struggle between the two competing entities is a carryover from the past as well; however, they came to prominence especially under the Reagan administration, when major tax breaks were announced by the government.
In recent years, this rift has been surprising to many, as the majority of the corporations are in favor of Biden administration policies regarding vaccination and overall woke culture.
But as Republicans are against any such mandate, they always oppose them. The GOP lawmakers chastising the big corporations have become a new norm, where senators have even introduced legislation to bring the corporations to justice if they fail to justify that their actions of supporting woke culture are not in the interest of the stakeholders’ best interests.
Vaccination Mandate: The Major Roadblock Between Republicans and Corporate Agendas
The purpose of the GOP in opposing the corporations is basically political because it is helping the Biden administration in extending their agenda.
Their opposition is in line with their other anti-Biden agenda, be it in the form of the infrastructure bill or the social reconciliation package, or even voting rights.
Senate Minority Leader Mitch McConnell and the chamber of commerce opposed the infrastructure investment package because it will increase the tax rate on corporations and major productive sectors of the economy.
Ideally, big businesses should be the biggest supporter of the GOP because they provide them with the tax cuts necessary for the sustainability of the businesses. However, some anti-woke policy measures of the Republicans put them at the crossroads of corporations.
But this pro-woke attitude of the corporations cannot be equated with their support for Democrats. This is the point that most Republicans ignore when they claim that corporations are acting in a pro-Democratic fashion.
Most big businesses decry the Democrats’ efforts of raising taxes and their green agenda, as their business model will be strangled without it.
Corporate Agenda is for Their Own Sake, Not for Democrats
Another pressing issue that is contributing to the increasing hostility between the GOP and corporate America is the restrictive voting law issue.
This act of Republicans is facing a serious backlash by corporate executives because they think this restrictive voting law is a threat to the right to vote. More than 300 CEOs are considering this as discriminatory legislation.
Although the congressional Republicans are warning corporate America to stay away from politics, it is very difficult for these corporations to restrict themselves from political issues in the future because these political issues impact their interests.
At the end of the day, corporations have to win customers, and restricting voters’ rights is certainly a non-popular road on which they go or else they will lose business. So their support is not merely political but for the sake of their own profit.
In the past, both GOP and corporations got numerous benefits from each other. Corporations supported the war-hawkish policies of Republicans and, in return, got lower tax rate policies and tax cuts.
But during the last few years, the struggle of Republicans against Democrats is forcing Republicans against corporate America in some areas, especially regarding social issues.
The issue of LGBTQ rights is one of those issues because, in recent years, the calls for the acceptance of people irrespective of their sexual orientation have increased by manifold. So, once again, corporates have no choice other than to support their rights.
The corporations need to change with time and culture, or else their business models cease to exist. They need to think about the future consumers and their brand consciousness because, without that, the business is not viable in the long run.
Republicans need not think of the corporate support of the woke issue as their pro-Democrats move. Otherwise, they are buying a new enemy for themselves when they can team up with big corporations in various matters.
Republicans have a mighty advantage over Democrats in that they offer tax cuts to corporations which can help them in winning their support in matters of various nature.