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In Washington, D.C., there is a cozy connection between business and government. Corporate donations of large sums of money to their politicians, parties and special interest groups of choice are legion. Since the donations are considerable in most cases, it makes one wonder exactly what the businesses are getting out of the deal. Obviously nothing in this world is free, so the specific agenda could be important especially before a hard fought out election like we are probably going to see this year.
The Major Contributors
Most of the largest contributors to politics are into drug production, titanium oxides, real estate, finance and the gaming industry. For instance, titanium dioxide producer Contran Corp poured more than $411,000 toward politicians and their parties, with roughly $70,000 going to democrats and over $340,000 going to Republicans. Dwarfing these figures, however, was the $18.2 million Contran spent on outside spending groups such as various charities and other special interests. The second place contributor on the list is Las Vegas Sands (NYSE: LVS) with total contributions of $11.75 million.
Taking third in the list for raw contributions was Adelson Drug Clinic with over $754,000 going to the Republican party and $11 million going to outside spending groups. Some other substantial contributors are Perry Homes and the National Association of Realtors, donating $6.8 million and $1.8 million respectively. Even Goldman Sachs (NYSE: GS) managed to contribute $990,000 in 2012.
The Problem With These Donations
Ostensibly, we live in a democratic republic. As such, the will of the people is supposed to rule the day, not merely the will of a few large corporations and other lobbying groups. While charity is great, these corporations are not practicing charity. They are trying to influence Washington by throwing money around and essentially bribing politicians to be their puppets.
While it’s fine to advertise and gain support for a cause, this is not advertising. When one has to research the donations, the groups in question had no intention of concerning the public with their plans. And why would they? Considering that Goldman Sachs is essentially donating the taxpayer dollars Americans unwillingly gave it so it wouldn’t collapse under its own irresponsible decisions, why would they want the American people knowing that the money extorted out of them is going to bribe politicians into relaxing existing regulations? We all know how well it went the last time lobbying efforts got Washington to take a more laissez-faire attitude toward financial companies.
Then there’s Harold Simmons, the primary owner of Contran. His lobbying efforts and contributions thus far have done a great job in his unending war against capital gains taxes. With his estimated net worth of $9 billion, even a savings account would put his wealth into the top 1% range — and with his numerous business interests, that income is undoubtedly far higher. Nonetheless, his income taxes are in the 13.9% range, despite the fact that many Americans making a tiny percentage of what he does pay into the 30-40% range. He can afford the taxes, but he can also afford not to have to pay them. That must be nice.
Of course, one of the best things about being rich is that one can afford to do a lot with a little. Contran itself, among its many operations, also disposes of titanium oxide. This disposal process can be difficult due to the potentially dangerous nature of substances containing titanium oxides and dioxides, but it is far easier to bend the regulations and even shape them by cutting the right checks to the right people.
Ultimately, Washington is a great place for those who have substantial wealth and want to change the system for their own benefit. For everyone else, the only option is direct action to keep a small group of business leaders from having all the say in how our country is run.
