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Corporate donors line up for inaugural
No regulation governs such gifts
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January 13, 2005 - 12:15 pm

WASHINGTON - President Bush wants to lower barriers to building nuclear power plants, and the lobby that promotes nuclear energy could not be happier. To show its thanks, the group has given $100,000 to help pay for his inauguration.

"He's a big supporter," said John Kane, chief lobbyist for the Nuclear Energy Institute. "Our donation is just a small way of supporting him."

The nuclear energy industry's contribution is part of a record-breaking outpouring of corporate cash to next week's inaugural festivities. At least 88 companies and trade associations, along with 39 CEOs and top executives - all with huge stakes in administration policies - already have donated $18 million toward a $40 million goal for the country's 55th inaugural celebration.

Wall Street investment firms seeking to profit from private Social Security accounts; oil, gas and mining companies pushing the White House to revive a stalled energy-subsidy bill; and hotels and casinos seeking an influx of immigrant labor are among the 44 interests that have each given $250,000 and the 66 that have donated $100,000 to $225,000. And the money keeps pouring in.

Practically all the major donors have benefited from Bush administration policies, especially from corporate and individual tax cuts, deregulation and the new prescription drug benefit that is part of Medicare. Most also stand to boost profits further because of Bush's second-term proposals, which include limiting medical malpractice suits, creating private investment accounts as part of Social Security and making a tax-code revision that is expected to reduce taxes on investments.

Many donors are corporations and executives that are regulated by the federal government, dependent on government tax and spending policies, or both. At least 16 donors are from the finance industry, 14 are from the energy sector, six are real estate developers, and at least five are from both the health and telecommunications industries.

In the era of campaign finance reform, such largesse is all but forbidden. Federal law limits individual donations to $2,000 per election and corporations cannot give from their own treasuries directly to candidates or parties.

But for the inauguration, the law does not apply, and the administration has decided that private interests may contribute as much as $250,000 each. That is a 150 percent increase over the $100,000 maximum accepted during Bush's first inauguration four years ago.

An Inaugural Committee spokeswoman said the higher ceiling was needed to meet its fundraising goal. The committee plans to raise $35 million to $40 million to help defray the costs of the four-day celebration, including fireworks, the swearing-in, a parade and nine balls. In 2001, the committee raised $40 million.

In 1993, President Clinton's inaugural committee spent $33 million, raised primarily from souvenir and ticket sales, although there were 13 donors who gave $100,000 apiece and one who gave $250,000.

Critics see the high contribution limit as a vehicle for groups with business before government to buy more access to the people who make big-dollar federal decisions.

"Donors are going to say it's civic participation that motivates them, but they also use their contributions to buy access to lawmakers and the administration," said Sheila Krumholz, research director of the Center for Responsive Politics. "The advantage is enormous."

For corporations in particular, the benefit is almost unique. With the exception of the presidential nominating conventions, companies do not have legal ways to give significant amounts of cash to assist politicians. As a result, Krumholz said, "The Inaugural Committee provides opportunities to corporations that are hampered by the 'soft money' ban."

The only restraint on giving is the voluntary $250,000 limit, but that has been circumvented. In a few instances, both the parent company and its subsidiaries have donated.

Marriott International Inc. delivered $250,000 to the committee, as did each of two units: Marriott Vacation Club International and The Ritz-Carlton Hotel Company LLC.



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