Cadging on K Street

While we've been focusing on Downing Street, there's another street we should keep in mind. One street in DC holds the checks that our founding fathers couldn't forsee would throw our government into imbalance. "K Street, the lobbyists' boulevard." The WaPo takes a stroll and reports that it's out on control.

The number of registered lobbyists in Washington has more than doubled since 2000 to more than 34,750 while the amount that lobbyists charge their new clients has increased by as much as 100 percent. Only a few other businesses have enjoyed greater prosperity in an otherwise fitful economy.

...There's unlimited business out there for us," said Robert L. Livingston, a Republican former chairman of the House Appropriations Committee and now president of a thriving six-year-old lobbying firm. "Companies need lobbying help."

Lobbying firms can't hire people fast enough. Starting salaries have risen to about $300,000 a year for the best-connected aides eager to "move downtown" from Capitol Hill or the Bush administration. Once considered a distasteful post-government vocation, big-bucks lobbying is luring nearly half of all lawmakers who return to the private sector when they leave Congress, according to a forthcoming study by Public Citizen's Congress Watch.

And thanks to a "business friendly" administration, they've changed their tactics from defense to offense.

In the 1990s, lobbying was largely reactive. Corporations had to fend off proposals that would have restricted them or cost them money. But with pro-business officials running the executive and legislative branches, companies are also hiring well-placed lobbyists to go on the offensive and find ways to profit from the many tax breaks, loosened regulations and other government goodies that increasingly are available.

And here's how it works.

"People in industry are willing to invest money because they see opportunities here," said Patrick J. Griffin, who was President Bill Clinton's top lobbyist and is now in private practice. "They see that they can win things, that there's something to be gained. Washington has become a profit center."

Take the example of Hewlett-Packard Co. The California computer maker nearly doubled its budget for contract lobbyists to $734,000 last year and added the elite lobbying firm of Quinn Gillespie & Associates LLC. Its goal was to pass Republican-backed legislation that would allow the company to bring back to the United States at a dramatically lowered tax rate as much as $14.5 billion in profit from foreign subsidiaries.

The extra lobbying paid off. The legislation was approved and Hewlett-Packard will save millions of dollars in taxes. "We're trying to take advantage of the fact that Republicans control the House, the Senate and the White House," said John D. Hassell, director of government affairs at Hewlett-Packard. "There is an opportunity here for the business community to make its case and be successful."

So do you think HP is going to do the patriotic thing for the economy and pass those savings onto it's employees and consumers? I don't either. There's all too much more. Read it for yourself.