November 2001 - VOLUME 22 - NUMBER 11
An Interview with Nancy Watzman
Nancy Watzman is research and investigative projects director for Public Campaign, a group ìdedicated to sweeping reform that aims to dramatically reduce the role of special interest money in Americaís elections and the influence of big contributors in American politics.î Public Campaign has recently launched a web site, www.howdarethey.org, which highlights wartime profiteering. Watzman is the author of a November 2001 Public Campaign study, ìBuy Now, Save Later: Campaign Contributions and Corporate Taxation.
Our analysis shows that 16 companies which would get $7.4 billion in immediate tax rebates under the House plan contributed nearly $46 million to federal candidates and parties since 1991. |
Multinational Monitor: Why do corporations want to eliminate the
Alternative Minimum Tax? The House stimulus package not only includes a repeal of the AMT, it
also includes a rebate of any AMT payment that a corporation has made
since the law was enacted. Our analysis shows that 16 companies which would get $7.4 billion in
immediate tax rebates under the House plan contributed nearly $46 million
to federal candidates and parties since 1991. Two thirds of that money
went to Republican candidates and party committees. So these are big-time
campaign money players, and have been for a long time. MM: What is the Alternative Minimum Tax? MM: What would the repeal and rebate mean in terms of benefits
for specific companies? ChevronTexaco, for example, is the source of nearly $7 million in campaign
contributions, and would get $572 million in immediate rebates. General
Electric gave $6.2 million and would get $671 million in rebates. And
the list goes on. These are all major, profitable companies. MM: How long have the companies been campaigning to eliminate the
AMT? Repeal has been on the wish list for a long time. They are shoving it
through now at a time of crisis because it is an unpopular thing that
normally would be pretty tough to get through Congress. MM: The Public Campaign report also looks at other tax breaks that
groups of companies have been lobbying for. What do you find in those
other areas? We looked at some of these in the report. We found major lobbying for
loopholes by companies in the form of campaign contributions. One example is a tax loophole called foreign sales corporations, where
companies can claim credits on profits from exports. A bunch of companies
are lobbying to save that tax break even though it has been declared illegal
by the World Trade Organization. It is also a great example of how these things get expanded and changed
to benefit corporations. Back in 1997, Microsoft led a lobbying campaign to get the tax break
extended to software companies. They had a tiny, 87-word provision put
in a massive budget reconciliation bill. No one noticed it, but it was
worth a lot of money to software companies, including Microsoft. Their
contributions back in 1997 peaked the same month that Congress passed
that law. It shows how corporations are capable of working the system. They are
able to hire the best help, and use the campaign money to game the system
to their benefit. Its as if when youre filling out your tax form you could
hire as your personal lobbyist the former head of the Joint Committee
on Taxation. Thats what these corporations get to do. Ken Kies, who used to be the chief of staff for that committee, is making quite a lucrative living as a tax lobbyist for PriceWaterhouseCoopers. And hes not the only former staff member who has gone to work and used connections to secure these sort of benefits for clients. |
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It shows how corporations are capable of working the system. They are able to hire the best help, and use the campaign money to game the system to their benefit. | ||