http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/06/19/BUGMDD9B511.DTLWashington -- President Bush, working to gain support for his ambitious domestic agenda, is encountering increasing resistance from an unlikely place: American business, a usually reliable ally. Many of these pro-Republican interests see little potential benefit for them in helping Bush win his two fights with the highest stakes: shoring up Social Security and reshaping the tax code.
Businesses are warily watching as the president's tax commission, led by former Sens. Connie Mack, R-Fla., and John Breaux, D-La., considers alternatives for reshaping the tax code, including shifting the nation toward taxing what people consume rather than what they earn. "We have certainly told the White House and the Treasury Department that the ability to hold together a unified business coalition in favor of any of these changes will depend, not surprisingly, on the content" of the measure, said West of the wholesalers association.
Such a group could be hard to build again as Bush weighs a set of tax changes that some businesses fear will saddle them with higher costs and eliminate advantages they now enjoy. "It is not clear to us yet, in terms of that coalition, whether we can hold it together," West said. "Until we see a bill, and until we know who the winners and losers are in any tax measure, it's hard to know whether the support will be there."
Without the determined backing of business groups, it could be much more difficult for Bush to build a sense of urgency for the tax changes. That has been the case already with his Social Security proposal, which remains unpopular, polls show.