http://www.washingtonpost.com/wp-dyn/articles/A25661-2004Oct11.html
Payback on K Street
Tuesday, October 12, 2004; Page A22
THE CORPORATE tax bill that Congress has sent to the White House rewards
just about every special interest that retains a lobbyist in Washington.
Makers of sonar fish finders stand to gain, as do importers of Chinese
ceiling fans, dog-track operators who cater to foreign gamblers, and Native
Alaskan whaling captains. But one lobby did not do so well, and its identity
is revealing. The Motion Picture Association of America, Hollywood's trade
group, had been hoping for $350 million a year in subsidies, which were
written into the Senate version of the bill as partial compensation for the
loss of a bigger export subsidy that the bill repeals. But the Senate's
largesse was cut back to around $100 million in the final bill that emerged
from the House-Senate conference, leaving the movie industry as the biggest
net loser from the legislation.
Why did the movie studios, which usually lobby with the best of them, lose
out? Perhaps because three months ago they had the temerity to choose Dan
Glickman, a Democrat, to head their trade association. The congressional
Republican leadership, which had the final say on the tax bill, made no
secret of its fury that a plum lobbying job had not gone to a Republican:
Grover Norquist, a close ally of House Republicans, called Mr. Glickman's
appointment "a studied insult," adding that the movie industry's "ability to
work with the House and Senate is greatly reduced." Commenting on the movie
moguls' comeuppance last week, Rep. Jim McCrery (R-La.) told Brody Mullins
of Roll Call that "it's a good idea to have someone who can communicate with
those who are in power," and that "[i]t's a consideration that any
organization hiring a lobbyist should take into account."
This suggests that Congress is corrupt not only in the manner in which it
awards prizes to favorite lobbyists, but also in the manner in which it
denies such prizes. By punishing the movie industry for giving its plushest
Washington job to the opposite party, the Republicans are saying that they
want such jobs reserved for their own side, partly so that they can vacuum
up the campaign donations that trade associations make and partly so that
members of their own party can spin through the revolving door into
millionaire nirvana. A few years ago, congressional Republicans claimed to
stand for free-market principles -- for the idea that government should get
out of the way and allow the economy to reward the innovators and
entrepreneurs who fuel progress. But power has corrupted the party. Now that
they are the incumbents, they skew the economic playing field so as to
reward their friends and fill their campaign treasuries.
The bill that Congress has produced is monstrous in just about every way.
Designed to close a $5 billion-a-year export subsidy that violated
international trade law, it ended by spraying out $140 billion in business
breaks over 10 years. It absurdly rewards tobacco farmers, and absentee
tobacco landlords, without imposing even the minimal regulation on tobacco
that the nation's biggest cigarette maker had agreed to. In Friday's debate,
President Bush said he would discipline Congress in order to reduce the
budget deficit. If Mr. Bush cannot bring himself to veto this terrible bill,
it will be hard to take him seriously.