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BusinessSeesGain In GOP Takeover Page1 of 4
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BusinessSeesGain In GOP Takeover XEROX
Political Allies PushCorporateAgenda
By Jim VandeHei
WashingtonPostStaff Writer
Sunday,March 27,2005; PageAOI
Fortune500 companies that investedmillions of dollars in electing
are
Republicans emergingas the earliestbeneficiariesof a government
Bush and the largestGOP Houseand Senate
controlledby President majority
in a half century.
MBNA Corp., the credit card behemothand fifth-largest contributorto Bush's
is
two presidentialcampaigns, amongthoseon the vergeof prevailing in an
eight-yearfight to curtail personalbankruptcies. Exxon Mobil Corp. and
othersare closeto winning the right to drill for oil in Alaska'swildlife refuge,
which they havetried to passfor betterthan a decade. Wal-Mart StoresInc.,
anotherbig contributorto Bush and the Gap, and other big companies
recentlywon long-soughtprotectionsfrom class-action lawsuits.
Republicans havepursuedsuchissuesfor much of the pastdecade, asserting
that free marketpolicies are the smartest way to grow the economy.But now
it appears they finally havethe legislativemuscleto push someof their
agenda and
throughCongress onto the deskof a presidenteagerto sign pro-
business into
measures law. The chief reasonis Bush'svictory in 2004 and
Gap gainsin Congress, especiallyin the Senate,wheremuch of corporate
has
America'sagenda boggeddown in recentyears,accordingto Republicans
andDemocrats.
"Thesearenot real high-profile, sexy issueslike the war or Social Security,
said
but theseareissuesthat havehugeeconomicconsequences," CharlesR.
top
Black Jr., a GOP lobbyist and one of the president's fundraisers. "And
thereis more to comeon that score."
Bush andhis congressionalallies are looking to passlegal protectionsfor drug
companies, and
doctors,gun manufacturers asbestos makers,aswell astax
and
breaksfor all companies energy-related assistance soughtby the oil and
gasindustry.
With 232 Houseseats, Republicans havetheir largestmajority since 1949.This is the first time sincethe
Calvin Coolidgeadministrationin 1929that the GOP hassimultaneously held 55 or more Senate seats
andthe presidency.Senate are
Republicans only five votesshy of the 60 neededto breakthe most
--
powerful tool the minority holds in Congress the filibuster.
Over the next four years,the GOP hopesto usethis enhanced judicial
power to approvethe president's
nominees, as and
someof whom Democratslambaste too conservative, restructureSocial Securityand
it which largely bankrolledthe
the tax code.But in the early daysof the 109thCongress, is corporations,
that ago
GOP'sresurgence begana decade with the Republicantakeoverof the House,that areprofiting.
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As recentSenate voteson bankruptcyand class-action lawsuitsshowed,corporationsrely on a number
and
of Democratsin the Houseand Senate continueto contributegenerouslyto both parties.But in the
2004 elections,Republicans received66 percentof corporatepolitical action committee(PAC) money,
which reflectsa trend of businesses In
tilting supporttoward the GOP over the last decade. 1993-94,
P
business ACs gaveslightly more to Democrats.
top
R. Bruce Josten, lobbyist for the U.S. Chamberof Commerce, feel
saidbusinesses a sense of
urgencyto enactasmany pro-business or
laws aspossiblebeforea fight overjudicial nominees a
Supreme Court openingbrings legislativeaction to a "screechinghalt."
Wal-Mart, the retailer many expertsconsiderthe most-sued companyin America, standsto benefit from
the new class-action to
law, which is designed cut down on lawsuitsand big verdictsby steeringsome
cases into federalcourts,away from statecourtswith track recordsof siding with plaintiffs and
awardingmultimillion-dollar verdicts,accordingto policy experts.
The company,which expressed disdainfor Washingtonpolitics in the 1990s,changedits tune
Majority LeaderTrent Lott (R-Miss.) sat down with the company's
dramaticallyafter then-Senate
in
managers Bentonville, Ark., in the late 1990sand warnedthem of the perils of sitting on the sidelines.
Soonafter, Wal-Mart becamea major player in GOPpolitics, funneling moneyto groupssuchasthe
U.S. Chamberto lobby on its behalf and creatinga political action committee.In the electionslast year,
the company's$2.4 million PAC was the third-largestcorporatePAC in the country, with nearly 80
percentof its moneygoing to Republicans. Wal-Mart officials contributedmore than $30,000to Bush
last election,accordingto FederalElection Commissiondatacompiledby the Centerfor Responsive
Politics, a nonpartisan the
organizationthat prepared fundraisingdatafor this article.
In many cases, companies suchas Wal-Mart spendsignificantly more moneyhiring Republican
lobbyistsand helping fund groupssuchasthe U.S. Chamberand other GOP-dominated trade
that Wal-
associations are not requiredto disclosetheir donorsthan they devoteto political candidates.
has
Mart, for instance, contributedat least$1 million to the Chamberof Commerce,accordingto
chamberdocuments.
said
Marty Heires,a Wal-Mart spokesman, the companydid not want to commentfor this report."They
that
want to play it low-key on this," he said.Wal-Mart is only one of scoresof businesses soughtthe
class-actionlaw. The companies, which includedtechnologyfirms suchas Intel Corp. and
pharmaceutical giantssuchasGlaxoSmithKlinePIc, did much of their lobbying quietly thougha group
calledthe ClassAction FairnessCoalition, which is run by the U.S. Chamberof Commerce's Institute
for Legal Reform. Both refusedto disclosetheir donors.
In the end,the companies the
prevailedbecause largerGap majorities werejoined by severalpro-
business Democrats, they negotiatedthat limited the
who were comfortablewith the compromises
campaigncontributionsfrom
effectsof the bill. Many of theseDemocratsalsoreceivedsubstantial
companies concerned aboutclass-action the
cases, Centerfor Responsive Politics found. The story is the
the and
samefor the bankruptcybill, which recentlypassed Senate appears to
headed easypassage the in
Houseandto Bush'sdeskthis spring.
are
United Republicans countingon the supportof enoughDemocratsto passa bill that hasbeenstalled
sincethe mid-l 990s.It would requiremany peoplefiling for bankruptcyto repaymore of their debt.
of all
Under currentlaw, tensof thousands peoplefile for Chapter7 bankruptcy,which erases of their
debt.The new law makesit harderto file for the more generousChapter7 protections.
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Most Democrats and consumers groupssaythe new law is too hard on the sick, divorcedand
unemployed.Supporters and
arguethat it is a necessary long-overdue way of preventingpeoplefrom
shirking their debtswhen they could repayat leasta portion of them.
Like the class-actionlaw, hundredsof companies in
standto benefit from changes the bankruptcylaw,
on
eventhoughit will include new mandates business, to
including one requiring credit companies tell
consumers how long it will taketo payoff their balanceif they makeonly the minimum payments.
Credit card and bankingcompanies, who are leadingthe lobbying effort, were top financersof Bush's
two campaigns. MBNA, Credit Suisse First BostonLLC, Bank of America Corp. and WachoviaCorp.
were amongthe top 20 contributorsto Bush, contributingmore than $300,000apiece.
The legislationincludesseveralprovisionsbenefiting specific industries.RetailerssuchasTargetand
a
Nordstrom,which help fund the National Retail Federation, tradeassociation lobbying for the bill, will
benefit because moneyeachyear when peopleerasetheir debt throughbankruptcy.
they lose substantial
"Retailerswho offer credit cardprogramsare left holding the bag on bad debt," said Craig Sherman,
for
spokesman the retail federation."This legislationwill get us out of this situation." Targetcontributed
80 percentof its $300,000-plus last
PAC moneyto Republicans election.
Ford Credit Co. and otherswould benefit from a provision that stipulatesthat all automobileloansbe
repaidin full by peoplewho file for Chapter13bankruptcy,or the auto will be repossessed. Under
currentlaw, only the presentvalue of the car must be repaid.Ford Motor donatedmore than 80 percent
of its PAC moneyto the GOP.
While bankruptcyis almost sureto becomelaw, Bush'spushto openAlaska'sArctic National Wildlife
51
Refugeto oil drilling still must clear severalhurdles.The Senate's to 49 vote on a sectionof the
budgetresolutionlast week movedcompanies suchas Exxon Mobil closerthan ever to realizing their
goal. If allowed, Exxon Mobil and other oil conglomerates would probably competefor the right to drill
there,companyofficials say.Nearly 1 million barrelsof crudeoil a day could be pumpedfrom the area
by 2025,accordingto governmentforecasts.
"It only happened Americanselecteda larger [Republican]majority," said Jim DeMint (S.C.),
because
one of sevennew GOP senators oil on
who supported drilling, citing America'sdependence increasingly
expensive foreign oil.
As further proof that the GOP andbusinessalonestill do not haveenoughpower to work their will,
many involved with the issuecreditedthe Teamsters union with playing a key role in the recentSenate
victory.
in
Exxon Mobil, which was the largestcontributoramongenergycompanies 2004, hasgiven $5.2
in
million to Republicans the pastdecade and lessthan $650,000to Democrats.Bush received$2.5
for
million from oil and gascompanies his reelectionbid alone.
for
LaurenKerr, spokesman Exxon Mobil, saidthe companyhasbeenclear aboutits supportfor
allowing drilling in ANWR and transparent aboutits political activities. Kerr saidthe companybelieves
we
that "it's important to look at resources havein our country."
Exxon Mobil is a leadingcontributorto Arctic Power,a lobbying group fornled to promotedrilling in
Alaska.Kerr would only confirnl that Exxon Mobil is a memberof Arctic Power.As for its political
that
contributions,shesaid, "We supporta rangeof candidates supportissuesthat are importantto the
industry."
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