Progressive faction calls for Neal's ouster as leading Democrat on Ways and Means Committee

Progressive advocacy organization Patriotic Millionaires has responded following POLITICO's investigation into the business activities of the son of Richard Neal, a leading Democrat on the Ways and Means Committee.

Progressive faction calls for Neal's ouster as leading Democrat on Ways and Means Committee
A progressive advocacy organization is urging the Democratic leadership to remove Rep. Richard Neal from his position as the leading Democrat on the House Ways and Means Committee due to what they describe as “a corrupt influence campaign by corporate interests” involving his son, Brendan Neal.

Patriotic Millionaires, a coalition of wealthy individuals advocating for progressive tax policies, expressed their concerns in a letter addressed to key Democratic figures. The letter cited recent reporting by PMG on the business dealings of Richard Neal and his son, stating it “brings to mind the Abramoff scandal, and reeks of old-school corruption that the party should not tolerate.”

PMG’s investigation revealed that Brendan Neal received $196,340 from his father's campaign and secured business contracts from tax lobbyists who had interests before the Ways and Means Committee. These lobbyists were associated with clients who gained legislative benefits from Richard Neal's initiatives, including tax deductions for trial lawyers and tax breaks for specific types of insurance contracts.

Morris Pearl, chair of Patriotic Millionaires, highlighted the report's importance in an Oct. 28 letter to House Minority Leader Hakeem Jeffries and several other members of House Democratic leadership. He pointed out that as Democrats prepare for negotiations in 2025 regarding trillions of dollars in expiring tax cuts, these issues become increasingly relevant.

While Democrats are expected to be sidelined in upcoming tax legislation due to Republican control of both Congress and the White House, they aim to frame GOP tax policies as beneficial mainly to the wealthy and special interests.

“If the Ways and Means Chair is a poster child for that corruption, and not a champion against it, Democrats will begin that fight on the defensive, and be unable to deliver on a central campaign promise to tax billionaires and corporations,” Pearl wrote.

In an email sent to Jeffries’ office, which was later shared with PMG, Pearl also requested a meeting with Jeffries to discuss his concerns, either in New York City or in Washington, D.C. He mentioned that he has not yet received a response from any of the letter's recipients, including Jeffries’ office.

Requests for comments from House Democratic leadership members, including Jeffries, went unanswered.

A spokesperson for Richard Neal, who has served in Congress for 18 terms and chaired Ways and Means from 2019 to 2023, dismissed the claim that Brendan Neal’s lobbying and corporate connections pose any conflict of interest for his father.

“As our office has repeatedly told PMG, Brendan Neal doesn't have any business before the Ways and Means Committee, nor has he,” said Dylan Peachey, Neal's spokesperson.

“Ranking Member Neal's focus is squarely on fighting for working families and fighting Republican control and exposing Trump's Billionaire Cabinet for who they are.”

Brendan Neal, in a statement to PMG for its special report, asserted that he has consistently adhered to ethics guidelines and does not lobby his father.

In addition to his work with his father's campaign and tax lobbyists engaged with the Ways and Means Committee, Brendan Neal was involved with a tax lobbyist for Blackstone at a time when the private equity firm was lobbying against measures to eliminate favorable tax treatment for private equity income, while Richard Neal was chairing the committee.

“Our tax code is a reflection of our nation’s values, and Democrats need a Chair who will be a champion for working people and the middle class, a barrier to corporate interests carving up our tax code, and free from the appearance of corruption,” Pearl stated.

“Representative Neal is clearly not that person, and it is your duty, as the leaders of the party, to replace him,” he added.

Frederick R Cook for TROIB News