Business Groups Aim to Stymie Senate Democrats' Drug, Oil Plans

By Jonathan D. Salant and Kristin Jensen

Nov. 30 (Bloomberg) -- Business groups, encouraged by the narrowness of the Democrats' majority in the U.S. Senate for the next two years, are laying plans to block or limit efforts to increase taxes on oil-company profits and curb prescription-drug prices.

The groups, which include the U.S. Chamber of Commerce, the National Federation of Independent Business and the Business Industry Political Action Committee, may be able to capitalize on rules that let a minority stall controversial measures. Democrats, who will control 51 of the new Senate's 100 seats, will need 60 votes to force consideration of legislation.

``Forty-one votes kills anything,'' said Bruce Josten, the top lobbyist at the Washington-based U.S. Chamber, the nation's largest business lobby.

In the last two years, the Republican-controlled Senate, with a bigger majority than the Democrats will have, failed to enact many of its pro-business priorities, including complete abolition of the estate tax, opening the Arctic National Wildlife Refuge to oil drilling and limiting damages in medical- malpractice cases.

Democrats may fare no better with their very different agenda, said Dan Danner, chief lobbyist for the Nashville, Tennessee-based NFIB, which will initially focus its efforts on defeating proposals to raise the minimum wage.

``Republicans had great difficulty getting anything through the Senate when they had 55 seats,'' Danner said. ``It's going to be difficult to get things done'' now, he said. ``Our members will be very appreciative if we can keep, in their eyes, the damage to a minimum.''

`Windfall' Profits

While Democrats have signaled they don't plan broad anti- business measures, they are pledged to policies that might hurt a few industries, such as energy and pharmaceuticals. In campaign speeches, Democrats said they want to review $2.8 billion in subsidies for oil and gas companies approved last year and let the federal government negotiate lower drug prices for Medicare.

Opponents of such Democratic initiatives say they might encourage filibusters, a parliamentary delaying tactic that requires 60 votes to overcome.

``If they try to pass things like a windfall-profits tax, the filibuster becomes a friend of the business community,'' said Greg Casey, president of the Washington-based Business Industry Political Action Committee, whose directors include officials of Detroit-based General Motors Corp. and Atlanta-based Southern Co., the biggest U.S. electricity producer.

`Negative' Efforts

``We do expect to see negative legislative efforts aimed at our industry, but we feel we have a strong and compelling story to tell,'' Houston-based ConocoPhillips, the nation's third- largest oil company, said in a statement in response to questions. ``Over time, we can work with whomever voters send to Washington.''

Senate Democrats will try to enlist Republicans in writing legislation to avoid logjams, said Will Edgar, a spokesman for Majority Leader-designate Harry Reid of Nevada. ``Everybody recognizes that the only way anything is going to get done in Washington is to work together,'' Edgar said.

Even so, several Republican senators that Democrats might have been able to enlist in such efforts -- such as Mike DeWine of Ohio and Lincoln Chafee of Rhode Island -- were defeated in the Nov. 7 election.

Friends in the House

In the House, where Democrats will hold a majority of about 30 seats depending on the outcome of still-disputed elections, business groups will have friends in some key positions.

Representative Steny Hoyer of Maryland, who will be House majority leader in January, has ties with the business community that he says he intends to use. ``In order to legislate effectively, you need to talk to all of the various interested parties,'' he said in an interview.

Meanwhile, the Blue Dog Democrats, a coalition that supports balanced budgets and bipartisanship, increased its membership in the election to 44 from 37. ``This Congress is not going to run an anti-business agenda,'' said Representative Allen Boyd of Florida, co-chairman of the Blue Dogs.

Steve Anderson, president of the Washington-based National Restaurant Association, noted that many of the new House Democrats won in traditionally Republican districts. ``They talked a pretty good pro-business line,'' he said.

While Democratic leaders have pledged to increase the minimum wage, Anderson said his group will be pushing to soften its impact through tax breaks or other incentives for smaller businesses.

Pelosi, Rangel, Dingell

Many of the new Democratic House leaders have failed business's litmus tests in the past. Speaker-designate Nancy Pelosi of California had a 36 percent pro-business rating on the Chamber of Commerce's 2005 scorecard; Charles Rangel of New York, in line to head the tax-writing Ways and Means Committee, got a 38 percent rating; and John Dingell of Michigan, the new chairman of the Energy and Commerce Committee, had a 52 percent rating.

The three Republicans they are succeeding -- Dennis Hastert of Illinois, Bill Thomas of California and Joe Barton of Texas -- all scored 90 percent or better.

Business groups said the strength of their opposition to Democratic plans will depend on how they are treated by the new majorities. The restaurant group's Anderson said his group is willing to back Democratic candidates who treat it fairly.

And Dirk Van Dongen, president of the Washington-based National Association of Wholesaler-Distributors, said that if Democrats ``move toward a middle ground, you may see a reduction of the fervor to restore'' Republicans to power.

To contact the reporters on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net ; Kristin Jensen in Washington kjensen@Bloomberg.net .

Last Updated: November 30, 2006 00:13 EST

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