Roll Call reports that one year after they took office promising to curb the corrupting influence of special interests in Washington, Congressional Democrats are seen by some lobbyists as more pliable than their Republican counterparts:
But after 12 months of Democratic rule, lobbyists for business interests big and small say their worst fears have not materialized. And some say the Democratic Congress has courted their clients for not only campaign money but also for their suggestions on myriad legislative issues… One Republican business lobbyist who did not want his name used said that, in a complete reversal of expectations, some Democrats have made for a tuned-in audience – without the baggage GOPers carry from socially conservative groups, which can be at odds with corporate lobbyists. “This Congress has been far more receptive to engaging in conversation and learning about issues that are important to business and trying to work with us than the Republican Congress ever was,” said one Republican business lobbyist. “The Republican Congress became very arrogant, and they ignored business for at least the last two years. … It was a huge surprise that Democrats were willing to reach out and talk to nontraditional allies.”
Corporate interests tend to lobby against regulation and taxes, and in favor of federal support for their companies and sectors when possible. The return of Democrats to a position of power in Washington has in some some cases led to nothing more than a change of playbooks for business interests. Rather than lobby for tax cuts and regulatory reform, they started to push for federal financial support and restrictions on competitors. Democrats have won some fans in the corporate sector through measures like the farm bill and their reluctance to consider new trade agreements. And while Democrats have sought to dramatically increase taxes, and impose costly new mandates and regulations on business, that agenda has largely failed. As a result, many business lobbyists have expanded their giving to Democrats, leading the party and its candidates to establish a strong lead in fundraising heading into the 2008 election. Not all business lobbyists regard the new leaders in Congress as friends and allies, however:
“The business community’s fears of this Congress were absolutely well-founded,” said Jade West, senior vice president of government relations for the National Association of Wholesaler-Distributors and manager of the Tax Relief Coalition. “The rhetoric from the Democrats as they took control was kind of gotcha rhetoric,” West said. “The only thing that has saved the business community from really bad policy appears to be Democratic ineptitude. They haven’t gotten done what they threatened – or promised…” In 2009, if Congress does not act, many of the Bush administration tax cuts will expire. “The business community is going to have to fight to make Congress do something, otherwise they’ll have the biggest tax increase in the history of the world.”
Many companies will regret their pattern of giving if Democrats win Congress and the presidency in 2008.