Carolyn Kaster Associated Press House Speaker John Boehner faces reporters with President Barack Obama at the White House on Nov. 16, as congressional leaders held talks on avoiding the "fiscal cliff" with tax revenue or spending cuts.

0 comments | Print

Lobbying is stepped up on 'fiscal cliff' talks

Published: Sunday, Nov. 25, 2012 - 12:00 am | Page 16A
Last Modified: Sunday, Nov. 25, 2012 - 8:36 am

WASHINGTON – As Washington debates how to trim runaway federal budget deficits without going over a "fiscal cliff" of immediate tax increases and automatic spending cuts, special-interest groups are mounting aggressive campaigns to make sure that they're not the ones who have to pay the price.

Defense companies, health care providers, public broadcasting and even national parks enthusiasts are warning that cuts to their interests would cost jobs and hurt consumers. Some say that all entitlements such as Medicare and Social Security should be off-limits. So, too, should be federal aid to education. And tax breaks for contributions to charity. Others say the wealthy should shoulder the burden.

Several unions, including the Service Employees International Union, the American Federation of State, County and Municipal Employees and the National Education Association, launched an advertising campaign Tuesday in five states – Alaska, Colorado, Missouri, Pennsylvania and Virginia – urging tax increases on higher incomes. AARP, the massive group of older Americans, is planning a "Lobby Day" next month. And others are mobilizing.

Their key message is that the top tax rates on individual income above $200,000 and family income over $250,000 need to go up. They also want to ensure that entitlement programs – Medicaid, Medicare and Social Security – are protected in any kind of a "grand bargain" between President Barack Obama and Congress.

AARP, one of the most powerful lobbying groups in Washington, is working to ward off any cut in benefits in the programs that aid the elderly and the poor.

"Our biggest concern is that the end-of-the-year debate may look to Medicare and Social Security to make cuts," said David Certner, AARP's legislative policy counsel. The possibilities on the table include reducing the cost-of-living adjustment for Social Security benefits this year, raising Medicare eligibility from age 65 by one or two years, and requiring co-pays on some Medicare benefits.

Others are pushing for changes in those same programs.

In a letter to Congress signed by more than 200 businesses, the U.S. Chamber of Commerce said lawmakers should extend all of the expiring tax cuts, including those for income above $200,000, and turn instead to entitlement programs. "Our nation's entitlement programs are unsustainable. If we do not make sensible reforms, the programs will go bankrupt – and so will the nation," said the letter.

Meanwhile, the American Sustainable Business Council and Business for Shared Prosperity sent Congress a letter signed by 600 business owners, urging that the top rates go up.

"Contrary to what tax-cut defenders claim, job creation is driven by customer demand, not taxes," said Josh Knauer, president and CEO of Rhiza Labs, a Pittsburgh-based software company.

But taxing the wealthy has its downside, as several groups are arguing that limiting charitable deductions for the most well-to-do will hurt everything from the arts to education to relief efforts by the American Red Cross.

"We understand this idea of capping deductions is gaining some ground with both parties," said Geoff Plague, interim vice president for public policy at Independent Sector, an association that represents nonprofits. "Our message is that there ought not to be a cap because of the impact on charitable giving."

The Charitable Giving Coalition, representing more than 50 nonprofit organizations and charities, is taking to Capitol Hill on Dec. 5 during the lame-duck session of Congress to make the case for preserving the existing charitable deduction.

All of this leaves lawmakers with the task of weighing the special interests.

Sen. Michael Crapo, R-Idaho, is one of the Senate's "Gang of Eight," four Democrats and four Republicans who have been working for years to craft a bipartisan budget deal.

Crapo said he approaches interest groups by first saying everything has to be on the table, including that group's interest. He looks at the "zero option," or eliminating a program, then will ask why it should survive.

"Instead of taking 1,000 pages and going one by one, and having people saying 'Don't touch this,' they have to build it back in," he said. "It changes the dialogue. Instead of everybody being in opposition, they can offer a positive response."

© Copyright The Sacramento Bee. All rights reserved.



About Comments

Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "Report Abuse" link below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

Here are some rules of the road:

• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "Report Abuse" link to notify the moderators. Responding to the comment will only encourage bad behavior.

• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.

• Do not attack other users; focus your comments on issues, not individuals.

• Stay on topic. Only post comments relevant to the article at hand.

• Do not copy and paste outside material into the comment box.

• Don't repeat the same comment over and over. We heard you the first time.

• Do not use the commenting system for advertising. That's spam and it isn't allowed.

• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

• Don't flag other users' comments just because you don't agree with their point of view. Please only flag comments that violate these guidelines.

You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "Report Abuse" link to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them.

hide comments
Sacramento Bee Job listing powered by Careerbuilder.com
Quick Job Search
Buy
Used Cars
Dealer and private-party ads
Make:

Model:

Price Range:
to
Search within:
miles of ZIP

Advanced Search | 1982 & Older



Find 'n' Save Daily DealGet the Deal!

Local Deals