WASHINGTON -- December 15 -- During his campaign for reelection, President Bush outlined in stump speech after stump speech his top domestic priorities for a second term: tax reform, partial privatization of Social Security and limits on damages awarded in malpractice suits.

After more than a month of news dominated by the reshuffling of the president's cabinet, the White House resumed its sales pitch to voters this morning with the start of a two-day economic conference in downtown Washington.

The event features an eclectic lineup of experts from corporate America, academia, government and policy organizations. Their job is to attract popular support for the president's domestic programs, which all sides agree will require at least some Democratic support to win congressional approval.

Among the panelists are representatives of industries and interest groups that contributed heavily to Republicans for the 2004 elections and have an enormous financial stake in seeing Bush's proposals become law.

Of the 35 participants announced by the White House last week, 17 have contributed more than $200 to one or more federal candidates, PACs or party committees during the current election cycle. Together they have given nearly $195,000 to Republicans
-- including $40,000 to the Bush campaign -- and just over $23,000 to Democrats.

The employees and PACs of their respective organizations have contributed more evenly -- a total of $5.6 million to Republicans and $7.1 million to Democrats. But several of the industries they represent -- including securities and investment firms, banks and retail stores -- favor the GOP with their giving and strongly supported Bush in the presidential race. These interests are hoping for more than a slot on a conference panel. They are expecting a seat at the table when the specifics of Bush's economic proposals are hammered out behind the scenes.

Below are brief profiles of some of the issues being discussed at the conference and the interests trying to influence the debate.

TAX REFORM

The panel titled "Tax and Regulatory Burdens" will examine the negative effects of taxes and regulations on the economy. Bush campaigned on simplifying the tax code, itself an enormously complex task, and lowering taxes on savings and investment. He hasn't yet outlined specifics, but two items almost certainly will be part of a White House plan: making Bush's prior tax cuts permanent and modifying the alternative minimum tax, which ensures that even wealthy people who take advantage of tax breaks pay some taxes.

Both proposals are supported by a broad array of business groups. Chief among them is the U.S. Chamber of Commerce, which has contributed more than $152,000 in individual and PAC donations in the current election cycle, 79 percent to Republicans. The group's total budget for the 2004 elections was reported to approach $40 million. The Chamber spent more than $20.1 million on lobbying in the first half of this year.

The White House put Tom Sullivan, the Small Business Administration's chief counsel for advocacy, on the panel. Sullivan is a former executive at the National Federation of Independent Business, which has contributed more than $701,000 in individual and PAC contributions during the current election cycle 98 percent to Republicans. The group also sent out millions of postcards, emails and faxes to help get out the vote this year. NFIB spent $1.5 million on lobbying in the first half of the year.

SOCIAL SECURITY REFORM

During the presidential campaign, Bush and John Kerry tangled over how to keep the Social Security system solvent for future generations. Bush wants to allow individuals to invest part of their payroll taxes in private investment accounts, a plan that opponents charge would reap huge profits for most of the securities industry ($70.6 million in individual and PAC contributions during the current cycle, 52 percent to Republicans). Bush raised more than twice as much money as Kerry from the industry during the presidential campaign.

Securities and investment firms deny that partial privatization of Social Security, as the president's policy is described, would have much of an impact on their bottom line. They will be represented on the panel titled "Financial Challenges for Today and Tomorrow" by Liz Ann Sonders of Charles Schwab ($300,000, 62 percent to Republicans).

Securities giant UBS Americas ($2.4 million, 61 percent to Republicans), which could have a major stake in the outcome of the Social Security debate, was represented by Mary Farrell, managing director and chief investment strategist of subsidiary UBS Wealth Management, in the day's first session on the state of the economy.

TORT REFORM

Republicans for years have been pushing for tort reform, and they may finally get their wish after gaining seats in the House and Senate in the November elections. Bush has indicated he wants to start by limiting damages in medical malpractice suits, which he says have contributed to the skyrocketing costs of healthcare.

Health professionals ($59.6 million, 63 percent to Republicans) and hospitals ($13.5 million, 53 percent to Republicans), led by the American Medical Association and the American Hospital Association, are behind the president. The AMA has contributed more than $2.1 million in individual and PAC contributions in the current election cycle, 77 percent to Republicans. The AHA has contributed $1.7 million, 56 percent to Republicans.

Also on the tort reform agenda is class action reform, a priority of virtually the entire corporate community. Home Depot, which is being represented by CEO Bob Nardelli on the panel titled "The High Costs of Lawsuit Abuse," has made tort reform one of its legislative priorities. The company has given $1 million to the U.S. Chamber of Commerce Institute for Legal Reform, reports National Journal. Home Depot's employees and PAC have contributed more than $861,000 in the current election cycle, 93 percent to Republicans.

The high tech industry also strongly supports class action reform. Kevin Rollins, CEO of computer maker Dell ($409,000, 79 percent to Republicans), was part of the opening session on the state of the economy.

AFFORDABLE HEALTHCARE

Bush is pushing a number of proposals designed to make healthcare more affordable. One of his top priorities in this area is the expansion of health savings accounts (HSAs), which allow individuals to make tax-free contributions that they can later use for medical expenses.

Health insurers and HMOs ($6.3 million, 60 percent to
Republicans) strongly supported the creation of HSAs in the Medicare prescription drug bill that passed in 2003. America's Health Insurance Plans, the leading trade group for health insurers, is working to ensure that changes in the administration of HSAs give health insurers the flexibility they need. The group's PAC has contributed $185,000 to federal candidates in the current election cycle, 71 percent to Republicans.

AHIP is undoubtedly familiar with Gail Wilensky, a panelist in the session titled "Making Healthcare More Affordable." Wilensky served under Bush's father as administrator of the Health Care Financing Administration, which handles Medicare, and as an advisor on health and welfare issues. Now a senior fellow at Project Hope, she was one of Bush's spokespeople on Medicare reform during this year's presidential campaign.

This story, along with related charts and links, is available online at <http://www.capitaleye.org/inside.asp?ID=147>

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