K Street

K Street columnist Jeffrey Birnbaum was online to discuss the intersection of business, politics and government on Tuesday, May 22, at 11 a.m. ET.

A list of Birnbaum's columns can be found here.

A transcript follows.

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Jeffrey Birnbaum: Hello everyone.

Thanks so much for writing in. It looks like I have a long list of good questions today.

So I might as well get right to them.

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Washington, D.C.: So, what do lobbyists do if they don't lobby as you say?

Jeffrey Birnbaum: I think I know what you mean. So if lobbyists do more than just lobby, what is it that they do? Well, there's a ton of stuff. They organize other lobbyists into coalitions, which sometimes are silly sounding as I pointed out today in the column. They plan PR campaigns or advertising campaigns or conduct research or get folks back home to write to their congressmen. There's a whole lot in lobbying that goes beyond pressing the flesh on Capitol Hill. Oh, I forgot to mention raising money. That's a big one too. In fact, my guess is that the real growth part of lobbying will be in the areas that do not require registration as a lobbyist. But from my viewpoint, just to be clear, all of the people who do all of the above activities are lobbyists no matter what a lawyer might say.

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Bethesda, Md. Why are you always picking on lobbyists? Former lawmakers are allowed to lobby.

Jeffrey Birnbaum: I'm not picking on lobbyists. I am making a broader point that I think is important: Lobbying has gotten so large and so lucrative that lawmakers have lobbyist envy. They aspire to become lobbyists when they are done with the electoral careers. That's a very big change in Washington and one that has shifted the balance of power here. That's not picking on anybody--at least I don't think so.

If I'm wrong, let me know!

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Washington, D.C.: I noticed that you wrote a whole story last week about Republicans raising money. Why do you give only one paragraph to Democrats doing the same thing in your column this morning?

Jeffrey Birnbaum: I was just trying to be fair and balanced, as my friends at Fox News like to say. I got an e-mail or two criticizing me for mentioning only late in that story (about the President's Dinner and the instructions given to lawmakers about how best to raise money) that the Democrats have the same kinds of incentives: money for access to big names on the Hill. So when I received copies of invitations to the Democrats' echo event for their top official, Speaker Pelosi, I saw the chance to emphasize the point that there is bipartisan hunger for campaign cash.

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Potomac, Md.: What about this talk of "bundling?" I'm not sure what that means or what all the lobby reform groups are shouting about. Won't it be included in the House version of the ethics legislation?

Jeffrey Birnbaum: Bundling is when anyone, lobbyists in this case, raise a bunch of money for a candidate and send the checks together (or bundle) to that candidate's election committee. In our system, it's not the givers of funds who are most important but the people who raise funds from lots of other people and then get credit for the total amount from the candidate. Right now there's no way to know how much money lobbyists are actually giving to lawmakers; the bundling disclosure requirement pending in the House ethics bill would for the first time mandate that lobbyists say who they are raising big money for. But the bill itself looks like it may be in trouble. What's more, the bundling provision is so controversial that it is coming up as a separate piece of legislation this week, an amendment to the main lobby bill. That may mean this worthy reform idea is dead -- just like so many other worthy proposals despite the Democrats' campaign promises last year to change the way Washington works.

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Washington, D.C.: Don't coalitions make sense in this day and age?

Jeffrey Birnbaum: Yes, they make immense sense. But that does not mean they are not ridiculous in their obscurity and funny in their names, at least sometimes. I was just having a little fun laying out some really silly-named coalitions this morning. Several of them are very serious indeed and protect big money for businesses. But that's nothing to laugh at.

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Washington, D.C.: What ever happened to the idea of an Office of Public Integrity in Congress?

Jeffrey Birnbaum: That's one of those worthy ideas that have fallen away as lawmakers realize they do not really want to crack down on lobbyists or themselves when it comes to ethics. That is the pattern we saw last year (when nothing happened on the ethics front after big promises) and it looks like the same pattern is developing again this year.

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Washington, D.C.: Why were you after Micah Green of SIFMA? What's so newsworthy about the head of a trade association anyway?

washingtonpost.com: Lobby's Co-CEO Quit After Probe (May 17)

Jeffrey Birnbaum: First, I think trade associations are very important, certainly the big ones. And SIFMA is the biggest lobby group for Wall Street, representing both stock and bond sellers.

Second, I was not after Micah. I have known Micah for more than 20 years and I would have much preferred never to have learned about his problems at SIFMA. But once I was told about them, at least in outline form, it was my responsiblity to pursue the story and to publish it accurately.

That process took a few weeks and countless phone calls. A lot of what was and probably is still being said about Micah among financial services lobbyists was wrong and I considered it my duty to write accurately about what acutally happened to the best of my ability. I think Micah and SIFMA are better served by that sort of disclosure in the long run no matter how painful it may seem at the moment. The story about the board investigation and the loose financial procedures at the Bond Market Association was sure to come out eventually. I made sure it came out as accurately as possible.

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Bethesda, Md.: The Ethics bill is finally getting some steam behind it in the House. What do you think? Will is pass, fail or what?

Jeffrey Birnbaum: Well, we'll know this week. I hear it's a close question. At the same time, the Democratic leaders are very committed to the idea of passing a lobbying/ethics bill and I do believe that they will be pressing as hard as they can possibly to get it through the House.

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Fairfax, Va.: You are always so dismissive of the lobby reforms in Congress. Don't you think that more disclosure by lobbyists will really help us learn about how that system actually works inside? That's in the House legislation I think.

Jeffrey Birnbaum: I don't think I'm dismissive but then again I may not be the best judge.

You are correct that there are many excellent disclosure improvements in the bill pending in the House and also in the bill that has already passed the Senate. Knowing what lobbying contribute to lawmakers' coffers and having a better idea who lobbyists actually talk to would be terrific, and the House version of the bill would do both. Let's see what comes out in the end, and then you can yell at me.

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Arlington, Va.: Aren't special interests going to stop the immigration bill? It strikes me that groups like that are going to kill the one chance that's out there for a big reform.

Jeffrey Birnbaum: I don't know that it's "special interests" that will stop the bill, but it looks like a huge collection of things may present too high a hurdle for it to pass in the Senate. The AFL-CIO doesn't like the bill from the left part of the political spectrum, and there are even more opponents on the political right. Major portions of the compromise legislation will be attacked with amendments as early as this week. If any of those pass, the bill will probably die--even before the "special interests" worked their way.

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Reston, Va.: Do you think Sallie Mae will survive all the attacks against it and go private as it's scheduled to do?

Jeffrey Birnbaum: The student loan industry has had a very rough go lately, especially from the attorney general of New York. But I do think the puchase of Sallie Mae by a private equity group will go through eventually, though the price might have to be reduced a little as a concession to the big chunk of change that Congress is likely to slice from the guaranteed loan program this year. The Demcorats in charge in Congress are not big fans of Sallie Mae, et al, to say the least.

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Vienna, Va.: Other than the use of the Internet, how much different is Washington lobbying than it was when you and Alan Murray wrote "Showdown at Gucci Gulch?"

Jeffrey Birnbaum: A lot has changed. Lobbying is now an integral part of the process. Lobbyists are no longer pleaders on the edges of government. Advertising is now a routine part of lobbying as are other direct appeals to actual voters. Those things were in their infancy 20 years ago. In fact, lobbying in general is much less through the front door and much more through the back door by using trained voters are fronts for lobbyists in DC. In addition, government is much much larger and more complicated, which gives lobbyists yet another new advantage over the overworked members of Congress.

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Washington, D.C.: When do you expect the Death Tax debate and all the money that flows with this issue to start again?

Jeffrey Birnbaum: I don't expect any serious debate to end the estate tax this year or next year. It was a live issue only when Republicans controlled Congress. Democrats are not eager to reduce taxes on rich people. They generally want to increase taxes on those kinds of people judging by the comments of the Democratic candidates for president.

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Seneca, S.C.: What about tax supported elections without campaign contributions?

Jeffrey Birnbaum: That's a lovely idea in theory that would probably not work in practice becuase voters do not wish to subsidize the efforts of politicians. At least that's my analysis. But if it did happen, interests would indeed have a tougher time being heard in Washington than they do now.

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Washington, D.C.: Earmarks were such a big deal last year but aren't they still around and coming back?

Jeffrey Birnbaum: They are indeed still around and they appear to be growing by the day. Democrats have not repealed the laws of legislation which essentially amount to every lawmakers for himself or herself in pursuit of goodies to bring home. Lobbying shops that specialize in earmarks do not report any significant fall off in business.

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Chevy Chase, Md.:

So do you think there will be more Republicans entering the presidential race. Fred Thompson maybe or Newt? And what difference will that mean?

Jeffrey Birnbaum: I do expect that within the month Fred Thompson will decide and probably enter the race. Gingrich has said he would wait until September to decide, which to me is tantamount to deciding not to run. He simply benefits from the attention he (and his books) get in the meantime. Such is our system of media.

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Washington, D.C.: So now that the Democrats are in the majority in Congress, what lobbies are up and which ones are down, or does it not make any difference?

Jeffrey Birnbaum: Each party has its own set of money constituents. Those are groups that provide a lot of campaign cash to the parties because they agree with each other so thoroughly. I think the big winners are organized labor, plaintiffs' lawyers, environmental groups, women's organizations and pro-choice groups on the abortion issue. These have all been close to the Democrats for years and are now benefitting from that loyalty.

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Tampa, Fla.: Since you're a tax geek, or former tax geek (Showdown at Gucci Gulf is a great book), who are the major tax lobbying boutiques in DC? Have the accounting firms toned their lobbying in the wake of Sarbanes-Oxley?

Jeffrey Birnbaum: To take the second first, lobbying to undermine Sarbox has only gotten more intense and will continue that way, in my view.

I will probably miss some of the tax boutiques but they include PricewaterhouseCoopers, the Federal Policy Group, Venn Strategies, and Capitol Counsel among others.

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Cedarville, Ohio: Does Cryo-technology for greater safety in crises have a place in present day America? It can control fires and allow collection of unburned fuel. Yet BP Oil insists on letting their fires burn out.

Jeffrey Birnbaum: Don't know.

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Washington, D.C.: The aforementioned book was about tax reform. Do you think the fact that we have more sophisticated and "back door" lobbying techniques now means any chance for a flatter tax is between small and none?

Jeffrey Birnbaum: Not many people are talking about lowering tax rates these days with budget deficits so large and big expensive problems (health care, Social Security) on the horizon. So I don't see anything like a replay of the Tax Reform Act of 1986--except as a way to raise more revenue, which did not happen back then.

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Washington, D.C.: You made a big deal about the president's dinner for the GOP the other day. So what? Don't the Democrats have these same sorts of programs--access to lawmakers for contributions. What ever happened to "fair and balanced"?

Jeffrey Birnbaum: Yes they do and I mentioned the latest big access opportunity for Democrats in my column this morning: The Tribute for the Speaker of the House, which will compete, in effect, with the President's Dinner for Republican donors, scheduled for the following week. Fair enough?

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Jeffrey Birnbaum: Thanks everyone for writing in. Lots of terrific questions. Let's try it again in a couple weeks.

Cheers!

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