By JEFFREY H. BIRNBAUM
The Washington Post
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In the 1990s, lobbying was largely reactive. Corporations had to fend off proposals that would have restricted them or cost them money. But with pro-business officials running the executive and legislative branches, companies are also hiring well-placed lobbyists to go on the offensive and find ways to profit from the many tax breaks, loosened regulations and other government goodies that increasingly are available.
Take the example of Hewlett-Packard Co. The California-based computer maker nearly doubled its budget for contract lobbyists to $734,000 last year. Its goal was to pass Republican-backed legislation that would allow the company to bring back to the United States at a drastically lowered tax rate as much as $14.5 billion in profits from foreign subsidiaries. The extra lobbying paid off. The legislation was approved, and Hewlett-Packard will save millions of dollars in taxes.
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The Republicans in charge aren't just pro-business, they are also pro-government. Federal outlays increased nearly 30 percent from 2000 to 2004, to $2.29 trillion. And despite the budget deficit, federal spending is set to increase again this year, especially in programs that are prime lobbying targets such as defense, homeland security and medical coverage.
In addition, President Bush has signed into law five major tax-cut bills over the past four years, and his administration has curtailed regulation. Over the past five years, the number of new federal regulations has declined by 5 percent to 4,100, according to Clyde Wayne Crews Jr., a vice president of the Competitive Enterprise Institute. The number of pending regulations that would cost businesses or local governments $100 million or more a year has declined even more, by 14.5 percent to 135 over the period.
Companies have had to redouble their lobbying merely to keep track of it all. "Much of lobbying today is watching all the change that's going on in Washington," Cigler said. "Companies need more people just to stay apprised of what regulators are doing."
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