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Lobbyists seeking new stimulus opportunities
Lobbyists are redoubling efforts to advance tax and spending provisions as President Barack Obama considers additional options to bolster the economy.
The renewed focus on fiscal stimulus measures comes as unemployment numbers have worsened. The economy lost 263,000 jobs in September, a figure that was worse than expected, and most economists predict the current 9.8 percent unemployment rate will rise above 10 percent.
The administration has been quick to claim that the policies now under debate would not amount to a second stimulus bill and that officials are interested in extensions or quicker spending in a variety of existing programs.
Senate Democrats are furthest along in the debate over extending unemployment benefits. The House already passed an extension and the Senate is now weighing how long to extend benefits for states with an unemployment rate of 8.5 percent or less.
But lobbyists are renewing their efforts on a broad range of additional provisions that they say would achieve the president’s goal of further bolstering the economy.
Business lobbyists are pressuring lawmakers to support a tax provision that would allow an array of industries to deduct net operating losses going back five years instead of two. The provision had been part of the debate earlier this year over the stimulus package, but it was narrowed to target small businesses.
“It didn’t provide the bang for the buck that it otherwise would have if it applied to medium- and large-size companies,” said Monica McGuire, chairwoman of the Net Operating Loss coalition and lobbyist at the National Association of Manufacturers (NAM). McGuire said supporters of the provision have held more than 100 meetings on Capitol Hill this year and have held two company CEO fly-ins to lobby members of Congress. “We’re just pounding the pavement,” McGuire said.
Lobbyists behind an $8,000 tax credit for first-time homebuyers have a new sense of urgency; the credit expires on Dec. 1. The Obama administration has praised the tax credit in public comments, and various Democratic and Republican senators are in favor of either an extension or expansion of the credit. Sens. Ben Cardin (D-Md.) and John Ensign (R-Nev.) have led the effort for an extension.
The program has already carried a $15 billion price tag, though, and lobbyists recognize that an extension is more likely to pass the Senate than the larger $15,000 credit pushed by Sen. Johnny Isakson (R-Ga.).
“That is something that has more support than digging deeper, as much as we’d like to see them do that,” said Ken Gear, executive director of the Fix Housing First Coalition. The coalition includes the National Association of Realtors and National Association of Homebuilders, among other lobbying associations.
The recent discussion of accelerated spending provisions and additional transportation funding has buoyed lobbyists who had pressed for more money in the original $787 billion stimulus bill for highways and general construction needs.
“We’ve been saying that since the stimulus was passed … the industry and the construction needs of the country show that we could do more,” said Brian Turmail, spokesman for the Associated General Contractors of America. His organization had 200 contractors travel to Capitol Hill on Tuesday to lobby lawmakers to pass a highway bill and boost spending on infrastructure.
“If you can’t get a new highway bill by the end of October, certainly you could pass an extension and boost investment in highway and transportation programs,” Turmail said.
Janet Kavinoky, the lead transportation lobbyist at the U.S. Chamber of Commerce, said she remains focused on a fully funded surface transportation bill, but believes that spending on transportation is a strong way to boost the economy.
“We are big believers that the more you invest in transportation systems, the more you support job growth,” Kavinoky said.
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