companies hoping to save their federal subsidies from budget cuts are
helping to pay for cocktail receptions, posh dinners and other glitz at both
political parties' conventions.
Some of the donors have anted up as much as $1 million to each the
Republican and Democratic host committees that are arranging the
entertainment and transportation at the quadrennial events.
The donations allow them to sow good will among the federal, state and
local officials who will attend the GOP event in Philadelphia later this
month and the Democrats' bash in Los Angeles in August.
The companies' good deeds will not go unnoticed. Their names will be
proudly displayed as ``primary partners, ``platinum and gold
benefactors'' and ``trustees'' in the convention programs and on the
literature and placards on display at the events where executives can
hobnob with Washington's elite.
The companies say their motive is simply to advance democracy and help
defray the cost of staging the massive events.
``We support the democratic process,'' Lockheed Martin spokesman
James Fetig said.
Others locked in the battle to cut what they see as wasteful federal
subsidies to wealthy companies -- the critics call it ``corporate welfare''
-- suspect another motive.
``One has got to be a moron and extremely naive to believe that the
wealthy corporations are contributing hundreds of millions of dollars just
for the fun of it,'' said Rep. Bernard Sanders, an independent from
Vermont who has led the battle against the subsidies.
The Democratic and Republican parties each get $13.5 million in tax
dollars to pay for their conventions.
But the government allows corporations, unions and individuals to donate
unlimited amounts -- and get a tax deduction -- to convention host
committees.
Eight of the 15 companies that have donated to both conventions' host
committees benefit from the federal programs that some lawmakers are
trying to kill. They also have substantial other business pending with the
government, from contracts to regulatory issues.
GM and DaimlerChrysler have made sizable donations at a time when
they are fighting efforts to trim programs that fund their research and
development.
Last month, the House voted, 214-211, to cut $126.5 million, or about
half the budget, from the Partnership for a New Generation of Vehicles, a
joint venture between the government and the automakers to develop a
car that gets 80 miles per gallon. The Senate has not decided yet whether
to go along.
GM, which has received $8.7 million under the program, contributed
more than $1 million to each convention's host committee.
DaimlerChrysler, which has gotten $19.7 million, is supporting each to
the tune of $250,000.
Both car companies also have received millions of dollars under the
Commerce Department's Advanced Technology Program, which uses
federal and private dollars to develop new products and is another target
of the budget cutters.
GM donated 400 cars to each convention. ``We consider that a
marketing opportunity, making our vehicles available to an important
group of people,'' spokesman William Noack said.
Several other beneficiaries of the Commerce program also are big givers
to both conventions, including communications giants AT&T, which has
given $1 million to both conventions, and Verizon, the former Bell
Atlantic, which has contributed $1 million for Philadelphia and $100,000
for Los Angeles.
Another target of the corporate subsidy cutters is the Overseas Private
Investment Corporation, which provides loans and insurance for
companies doing business in developing countries. One OPIC customer
is McDonald's, which has contributed $50,000 to the Philadelphia
convention and $25,000 for Los Angeles. Another is insurance giant
American International Group, which gave $500,000 for Philadelphia
AIG and a subsidiary, SunAmerica, also gave $1 million each for Los
Angeles.
Keith Ashdown, a spokesman for Taxpayers for Common Sense, an
advocacy group that supports cutting corporate subsidies, worries about
the effect of such donations.
``It is no secret that money that goes to grease the wheels of these
political conventions makes it difficult to stop the corporate welfare
machine,'' Ashdown said.
But another opponent of the subsidies disagrees, saying constituent
concerns often drive lawmakers' interests more than political money.
``Members don't look past the fact that a corporation might have
employees in their district, might have subcontractors in their district,''
said Rep. Joseph Hoeffel, D-Pa. ``One man's corporate welfare is
another man's desperately needed government program.''
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