In fact, the document contains hundreds of billions of dollars of items that industry can legitimately wring its hands about. "We made sure our clients learned of the contents in a very timely fashion," said Richard S. Belas, a tax partner at Davis and Harman LLP. "The 'joint tax' list is very important. It gives you a sense what will be on the list when lawmakers consider how to pay for other items in the budget."
That importance could be easily exaggerated, of course. Not that Leonard or Belas are doing so; they are both wise veterans of the game.
A King and Spalding news release touted former senator Dan Coats's activities for the firm's government relations practice.
(Fritz Reiss -- AP)
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Still, no one imagines that every measure mentioned in the document would ever reach legislation. Indeed, a similar and more-often produced report by the Congressional Budget Office is widely rejected as a credible source of revenue-raising alternatives.
What's more -- and I know this will come as a shock -- gullible clients could easily fall prey to lobbyists who don't check which options are really in play and which are mere fantasies of otherwise powerless staffers.
Former senator John Breaux (D-La.), now working for the lobbying law firm Patton Boggs LLP, is amazed at executives' naiveté when it comes to understanding the capital. He said that he has had to spend time explaining to otherwise sophisticated business people that, well, Washington isn't on the level. "There's a lack of understanding among industry as to the process of how Congress works," Breaux said. "They put too much credibility in a press release."
Then again, there hasn't been a year in recent memory that didn't include at least one tax bill. And for that reason alone, tax lobbying has been booming. "We always assume there's going to be something that people want, or want to avoid," Belas said confidently.
But lately, the direction of that movement has switched. Worry about tax increases has begun to eclipse the hope for tax cuts. "There's a high risk that deficits and the drive for revenue neutrality will put business into a defensive posture -- defensive against tax increases," said Lindy Paull, a former staff director of the Joint Tax Committee who now works with PricewaterhouseCoopers.
In addition, the possibility of a comprehensive tax overhaul, even one that originates with a pro-business president, is also giving corporate America the jitters. "There's a major concern by businesses that they will end up paying the bill for tax reform if it happens," Paull adds.
In the meantime, the Joint Tax Committee is stirring outrage -- and lots of extra work -- for the characters on K.
Speaking of Press Releases . . .
The other day I received a press release that bannered major news: "Former U.S. Senators Connie Mack and Dan Coats to Lead King & Spalding's Expanded Government Relations Practice." The release went on to say that Mack (R-Fla.) and Coats (R-Ind.) would "co-chair" the firm's government affairs group.
Turns out, there's less there than meets the eye. Mack said in an interview that he plans to work at King & Spalding "three or four days a month" and that not much of that time will involve actual lobbying of his former colleagues on Capitol Hill. "My role is counseling with and advising clients of the firm with regard to potential legislative matters; occasionally I will do some lobbying and that's it," Mack said.
In fact, the one topic that the firms' clients might want to hear most about from Mack -- taxes -- is the one he won't discuss with them at all. Mack and Breaux are co-heads of President Bush's tax reform commission and by the end of July plan to release a plan to revamp the code. Until then, both men have vowed not to assist any clients on tax matters.
"I do no lobbying of the Treasury. I don't counsel clients with respect to tax issues. I'm walled off from tax issues," Mack said. Then again, the King & Spalding press release names "tax" as one of the issues its government affairs practice specializes in. Said Mack: "I wish that had been left off."
Maybe they should have dropped the entire effort.
Trading Tall Tales
Hyperbole and false bravado are second nature in lobbying and public relations. Please send along any examples you know or have heard about. I bet there are some doozies out there.
Jeffrey H. Birnbaum writes about the intersection of government and business every other Monday. E-mail him at kstreetconfidential@washpost.com.
