Bush Donors Prepare Another Wish List
As Firms Seek Tax Breaks, Looser Rules
By JIM VANDEHEI and TOM HAMBURGER
Staff Reporters of THE WALL STREET JOURNAL
WASHINGTON -- President Bush's big-business donors, who reaped handsome returns on their political investments in 2001, are hoping for continued dividends this year.
Corporate lobbyists are looking to Mr. Bush to press Congress for tax breaks on depreciation expenses and new protections from lawsuits, and to resist any health-care changes that could raise costs for employers. Business interests also expect Mr. Bush to move administratively to relax workplace and environmental rules.
"All spinning aside, there is general feeling George W. Bush has been a great president for the business community," says Dirk Van Dongen, president of the National Association of Wholesaler-Distributors trade group and a top Bush fund-raiser. John Castellani of the Business Roundtable predicts Mr. Bush will continue to be "very responsive" to corporate requests leading up to the midterm elections this fall.
Top administration officials, led by political adviser Karl Rove, have been meeting with industry lobbyists in recent weeks seeking input on the president's 2002 agenda. Monday, Mr. Rove huddled with Bush economic adviser Lawrence Lindsey and a group of business lobbyists to discuss corporate-tax cuts, according to participants.
Business interests have given Mr. Bush millions of reasons to listen: Corporations and corporate officials provided Mr. Bush's presidential campaign and the Republican National Committee with the majority of its money for the 2000 election. Since then, corporations have pumped tens of millions more dollars into the RNC and party campaign coffers controlled by the president.
While labor unions and trial lawyers have shown similar allegiance to Democrats, the GOP, under Mr. Bush, has seized a commanding advantage in fund raising, thanks in large part to big corporations. During the first half of 2001, the RNC raised more than twice as much as the Democratic National Committee: $143 million compared with $70 million. That is the last period for which comparable figures are available, according to the Center for Responsive Politics, a nonpartisan research group here that tracks the influence of money in politics.
Democrats plan to make Mr. Bush's relationship with corporate donors the centerpiece of the party's strategy for the November elections, according to Democratic strategists. They believe Mr. Bush and the GOP are vulnerable to attacks that their policies favor companies at the expense of workers. This line of attack failed to dent Mr. Bush's popularity late last year. Still, Democrats contend that as the war in Afghanistan winds down, the public will become increasingly frustrated with what they see as the president's pro-business policies.
The White House denies that business interests -- or their political fund raising -- drive Mr. Bush's policies. "The president's agenda is driven by what's best for the American people," White House spokeswoman Claire Buchan says.
Regardless of what happens in the year ahead, Democrats say the president has provided them with plenty of ammunition during his first year in office. He overturned worker-safety rules, rejected an international global-warming treaty and rolled back numerous pro-labor laws backed by former President Clinton, among other things.
Many of the business community's top priorities likely will fall victim to election-year politicking and a tight federal budget, but here is a quick look at what companies will ask for in the new year.
Tax Breaks
Corporate lobbyists continue to press for tax breaks, in a variety of shapes and sizes. They want Mr. Bush to strike a quick deal on an economic-stimulus package; the version passed by the House would provide relief from the corporate alternative-minimum tax and a 30% bonus right off for new capital investments. AMR Corp., parent of American Airlines, and several chemicals companies will push for legislation to write off more of their operating losses, dating back to 2000. The National Federation of Independent Businesses, which represents many of Mr. Bush's small-business donors, is seeking a tax break for people who work from home, perhaps as large as $2,000 a person.
Health Care
Pfizer Inc., the president's biggest donor from the pharmaceuticals industry, and other companies are promoting a market-based drug benefit for seniors. They have encouraged the president to consider including the idea in his State of the Union speech this month. Drug makers oppose any price controls or Democrat-backed solutions that would limit their market share or profit potential, according to industry lobbyists. White House officials said the president is prepared to fight for "a market-based remedy." Industry officials also look to expand the number of people eligible to use and contribute to medical-savings accounts.
At the same time, small-business owners are asking Mr. Bush to back legislation allowing them to band together and purchase health insurance across state lines.
Pay to Play
Combined donations since Election Day 2000 to Bush's campaign, inauguration and recount effort and the Republican
National Committee
Company Donations
Marriott International $1,763,032
Anchor Gaming 750,000
Philip Morris 684,918
Hyatt Hotels 488,260
Enron 482,722
Lockheed Martin 459,200
Pepsi 393,200
Pfizer 355,991
AT&T 337,967
UST 331,327
National Rifle Assn. 320,417
Microsoft 311,190
Bristol-Myers Squibb 302,652
American Financial Group 301,000
Aflac 300,710
Source:Federal Election Commission data compiled by Center for Responsive Politics
Tort-Law Curbs
Health insurers will be among those urging Mr. Bush to limit lawsuits on several fronts. Many big corporations also are renewing their campaign to limit suits filed against health-maintenance organizations, a crucial tenet in final negotiations over a pending patients' bill of rights.
Insurance companies have joined forces with manufacturers to fight for limits on suits stemming from people exposed to asbestos. Mr. Bush favors legal changes, but his aides doubt Senate Democrats will allow a sweeping overhaul to pass in an election year. "Right now, we're just looking for progress," small-business lobbyist Amy Jensen says.
Energy
Southern Co., of Atlanta, and other utilities are pressing Mr. Bush to clarify the Clinton administration's "new source review" rules that require installation of new pollution-control equipment when plants are upgraded. Southern and other energy companies will continue to push for a new energy policy, rich in tax breaks and regulatory relief. Mr. Bush plans to repackage his energy policy as a crucial component of national security, in hopes of getting Senate Democratic leaders to drop their opposition.
Regulatory
United Parcel Service Inc., of Atlanta, and others are lobbying the Labor Department to come out with worker-safety guidelines, instead of strict regulations favored by many Democrats. Administration officials said Mr. Bush is leaning toward business-backed guidelines and likely will unveil them in the next few weeks.
-- John D. McKinnon and Stephen Power contributed to this article.
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