CQ TODAY ONLINE NEWS
May 24, 2009 – 5:55 p.m.
Building a Bridge Between Business and Democrats
By Alan K. Ota, CQ Staff
The nation’s small businesses have traditionally been in the Republicans’ corner but one group is crossing that political Rubicon and seizing an opportunity to work with Democrats on issues of common interest.
“We are working hard to find things we can agree on. Main Street is neither red nor blue,” said Dan Danner, president and CEO of the National Federation of Independent Business. “It’s a fact that the Democratic Party controls the House, the Senate and the White House. They are in charge of bringing issues to the floor. And we are determined to do what we can to make small business a priority.”
The strategy has drawn praise from Democrats such as Rep. Chris Van Hollen of Maryland, who chairs the party’s congressional campaign committee, but has been greeted with skepticism by other Democrats and criticism from some Republicans.
As part of a push to reposition the group in the center, NFIB officials formed the Divided We Fail Coalition with the Service Employees International Union (SEIU) and AARP to promote legislation that would provide for universal access to affordable health care. The small-business trade group followed up by stressing its desire to compromise on a range of issues in meetings with White House officials and Democrats on Capitol Hill.
Some Democratic leaders say they have been impressed by the group’s moves toward the middle. “We are pleased the NFIB has met with some of our members. They want to work on bills together,” Van Hollen said.
He referred to a March 24 meeting in the Capitol of NFIB officials and 15 freshman House Democrats, each hoping to win the group’s endorsement in 2010. The session produced quick results; eight days later, one participant, Walt Minnick of Idaho, introduced a top NFIB priority — a bill to establish a payroll tax holiday (
Opposition Criticism
The NFIB’s opening to Democrats has triggered a strong response from Republican leaders. House Minority Whip Eric Cantor , R-Va., castigated the NFIB for backing new constraints on credit card companies (
“Dan Danner or anyone needs to do what is in the best interest of small business,” Cantor said. “But I’m not sure that the position that was taken on the credit card bill was in the best interest of small business.”
The NFIB backed the credit card bill, citing concerns about delinquency notices, overdraft fees and the delayed recognition for payments by small-business owners to credit card companies.
Rep. Mike Pence of Indiana, chairman of the House Republican Conference, said the GOP will take its case against other Democratic priorities directly to small-business owners. Pence said he would make his first national foray over the Memorial Day recess to Indiana, western Pennsylvania and California to attack what he calls the “Democrats’ cap-and-tax plan,” referring to proposals to cap greenhouse gas emissions and set up a market-based trading program to meet the cap.
“We’re going over the heads of groups in Washington,” Pence said. “I don’t think small-business owners and family farmers are buying in to either the cap-and-tax proposal or a massive expansion of the government’s role in our health care.”
Danner said the NFIB had not taken a stance on the cap-and-trade proposal, but would oppose measures that would impose higher energy costs and fees on small businesses.
Impact in 2010
The NFIB has come under close scrutiny from both parties, because the group’s 350,000 members are regarded as a key constituency in the 2010 election.
Both parties have made small-business job creation a centerpiece of their domestic agenda in the 111th Congress. But they disagree on how best to help ailing small businesses survive the economic downturn and a credit crisis. While Republicans argue for more tax cuts and less regulation, Democrats want an economic restructuring that would include tax cuts along with potentially higher costs for energy and fewer tax breaks for employer health care plans.
Danner says the NFIB will take a hard look at giving Democratic candidates more financial support in the coming election, but declined to say whether he thought NFIB contributions would start tilting away from the GOP.
In the last election cycle, the NFIB’s political action committee gave $780,000 to federal candidates, with 83 percent devoted to Republicans, according to the Center for Responsive Politics. Danner said the group will continue to base donations on scores it gives to lawmakers for their votes. “It’s going to depend on what bills the majority brings to the floor,” he said. “We don’t have quotas for one party or the other.”
Senior Senate Democrats, such as Mary L. Landrieu of Louisiana, Small Business and Entrepreneurship Committee chairwoman, say they remain distrustful of the NFIB because of its history of backing GOP candidates. Landrieu said she was doubtful about the group’s political strategy even though her campaign received a $2,000 contribution from the NFIB PAC in the 2008 cycle.
“The NFIB has aligned itself to their detriment with the Republican Party,” Landrieu said. “I don’t know if they just gave up on Democrats, or Democrats gave up on them. Now, it’s important to get a balance back.”
She said she would closely watch to see whether the NFIB continues to focus mainly on GOP tax cuts. “Let’s see whether they speak to quality-of-life issues, not just to tax and regulation issues,” Landrieu said.
Danner says simply that his group plans to develop allies in both parties, and to choose sides based on the issue. For example, the NFIB took a neutral stance on the economic stimulus law (PL 111-5), arguing that more tax cuts were needed.
It has been working with Sen. Blanche Lincoln , D-Ark., and Senate Minority Whip Jon Kyl , R-Ariz., to promote a proposal that calls for lower estate tax rates and higher exemptions than President Obama wants. Lincoln and Kyl favor lowering the estate tax rate from 45 percent to 35 percent.
Danner says his group hopes to pick among the best ideas and candidates of both parties. “We welcome them to the small-business tent,” he said. “There’s a lot of room inside.”
Comments
Agrees with Mary Landrieu's distrust of NFIB political stategy. Why does NFIB feel that they must be part of the 'pay to play ' game? What are the benefits to it's membership in this game? As a member I haven't received any rewards from this game . NFIB needs to look internally and represent the needs of it's membership, instead of playing partisan politics and big donation givers
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