Lobbying expenses spiked as Congress shaped tax overhaul

Associated Press

WASHINGTON

Money spent on lobbying by corporations, trade associations and special interest groups spiked during the final three months of 2017 as they battled for the biggest breaks possible in the most dramatic tax overhaul in more than 30 years.

The figures for the heavyweights are eye-popping.

The National Association of Realtors tallied $22.2 million between Oct. 1 and Dec. 31, according to newly filed disclosure reports. That’s double what the organization spent in the third quarter on lobbying activities. The Business Roundtable spent $17.3 million in the fourth quarter, nearly quadruple the amount over the three previous months, and the U.S. Chamber of Commerce reported spending $16.8 million, a $3.7 million increase.

President Donald Trump swept into the White House promising to “drain the swamp” in Washington, but lobbyists continue to wield considerable influence, and they plied their trade with vigor as Congress crafted the $1.5 trillion tax-cut package that Trump signed into law in late December.

The tax overhaul was hustled through Congress in less than two months and mostly written in private. Public Citizen, a nonprofit watchdog group, said in a Jan. 30 report that more than 4,600 lobbyists were engaged specifically on the tax rewrite while several thousand more sought to influence tax policy in addition to other legislative matters. That worked out to 13 lobbyists for every member of Congress.

“Really in terms of galvanizing the entire profession, tax bills do that like nothing else,” said Lisa Gilbert, Public Citizen’s vice president of legislative affairs.

The National Association of Realtors said the millions of additional dollars in lobbying expenses were spent mostly on targeted advertising in the districts or states of members of the congressional tax-writing committees.

The Business Roundtable, made up of the CEO’s of America’s largest companies, promoted what it described as “pro-growth tax reform.” The group said the fourth-quarter spending increase reflected increased lobbying activity, paid advertising and the hiring of new staff.

One of the group’s lobbyists is its president and CEO, Joshua Bolten, who held a series of high-level jobs during President George W. Bush’s administration, including White House chief of staff from 2006 to 2009. In addition to its own lobbyists, the group paid outside organizations nearly half a million dollars to lobby on its behalf during the last three months of 2017.

Along with cutting the corporate tax rate from 35 percent to 21 percent, the tax law grants tens of billions in tax breaks on profits that America’s richest multinational companies have kept overseas. Both moves are big victories for big business.