WASHINGTON — Fashion and retail industry companies and executives poured thousands of dollars into key races before the midterm elections Tuesday that will determine control of Congress.
With the entire House and one-third of Senate at stake, major political action committees gave to Democrats as well as Republicans in tight contests or positioned for top leadership positions, from House speaker to chairman of the Ways & Means Committee, Federal Election Commission records show.
“You’ve got to have the money to win the turnout battle,” said Michael Munger, professor of political science and economics at Duke University. “Political science research shows that people are three or four times more likely to go to the polls if someone contacts them, knocks on their door or calls them on the phone….Money at this point is about turnout.”
Wal-Mart Stores’ PAC, which gave $2.49 million to state and federal lawmakers in the 2005-2006 election cycle, made two late campaign contributions, among its dozens of others, to Republicans in tough races, according to the most recent FEC report.
The world’s largest retailer donated $5,000 to Rep. Thomas Reynolds of New York, chairman of the National Republican Congressional Committee, who is in a close race against Jack Davis, an industrialist and millionaire who criticized Reynolds for “outsourcing American jobs” and supporting free trade.
Wal-Mart also backed Tom Kean Jr., who is in a neck-and-neck contest in New Jersey against Sen. Robert Menendez, a Democrat who favors stronger protections for workers and increasing the minimum wage and opposes “overly broad trade agreements that send jobs overseas.” Wal-Mart gave $5,000 to Kean, whom retail groups see as a more pro-business, pro-trade candidate. Target Stores donated $5,000 to Kean in October.
Wal-Mart has made a more concerted effort to contribute money to Democrats and other lawmakers who are sometimes at odds with the company’s legislative agenda. The retailer, which backs market-opening free trade accords, gave $25,500 to 11 Southern textile-state lawmakers, a powerful bloc that often pressures the Bush administration to protect constituents from the adverse impact of trade.
“There are definitely candidates that maybe haven’t been or aren’t familiar with Wal-Mart, and we are looking to reach out to them and educate them on issues that are important to the company and to our customers,’ said a Wal-Mart spokeswoman. “Textiles is important to our business. There are many reasons we give to candidates, and it is about establishing relationships and building relationships in a broad sense on a variety of issues nationally.”
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However, Munger of Duke University said, “At this point, it doesn’t make sense to give money to people whose vote you already have locked up. You want to give money to people running right on the edge, and then they will owe you something.”
Sears Holding Corp.’s PAC, which has given $418,765 to candidates, covered all of the key congressional bases, doling out $5,000 donations in September to House Speaker Dennis Hastert (R., Ill.) and Majority Leader John Boehner (R., Ohio), as well as separate $5,000 contributions to Senate Minority Leader Harry Reid (D., Nev.), who would become the majority leader, and Rep. Nancy Pelosi (D., Calif.), who would replace Hastert in a Democratic victory.
In the Senate, Sears contributed $2,500 to Chuck Grassley (R., Iowa), chairman of the Senate Finance Committee, which has jurisdiction over key trade and tax legislation, and $1,000 to Max Baucus (D., Mont.), the likely chairman if the Democrats take the Senate.
The rest of the industry’s PACs also selectively targeted their final contributions.
J.C. Penney Co., the National Retail Federation and the Retail Industry Leaders Association all gave money to Boehner through their PACs in September.
Quinton Crenshaw, Penney’s senior manager of financial corporate communications, said the retailer’s PAC based its political support on the candidate’s voting record on issues Penney’s considers important, committee assignments and leadership positions, and the “dynamics” of the races.
Labor unions hope to benefit from a Democratic win. The AFL-CIO has contributed $1.37 million to candidates, and UNITE HERE, the main apparel and textile union, which also represents hotel and gaming employees, has given $625,213.
UNITE, in the final month and a half before the election, gave funds to Democratic contenders for House majority leader: Reps. John Murtha (D., Pa.), $3,000, and Steny Hoyer (D., Md.), $5,000.
“They both supported us on the minimum-wage bill recently,” said Tom Snyder, national political director for UNITE. “When House Republicans tried to sneak in a poison pill [repeal of inheritance taxes for the wealthy], they were both with us,” in voting against the package, which was defeated.
A candidate’s position on trade also factors into UNITE’s campaign donations.
The union gave $1,000 to Larry Kissell, a former textile employee and Democratic challenger to Rep. Robin Hayes (R., N.C.), who has linked thousands of lost textile jobs to outsourcing and imports and has attacked Hayes for supporting the Central American Free Trade Agreement.
UNITE also donated $5,000 to Rep. Charles Rangel (N.Y.), the top Democrat on the House Ways & Means Committee, who may chair the panel and control the agenda on all trade and tax legislation should Democrats gain a majority.
Rangel, who has supported some trade-expanding measures and introduced a bill that extends apparel and textile trade benefits for sub-Saharan African countries, Haiti and four Andean nations, received $2,000 each from Wal-Mart, Sears and Limited Brands and $1,000 from Penney’s.
Rep. Bill Thomas (R., Calif.), the current Ways & Means chairman, is retiring, and the industry made contributions in September to the top contenders for the post: Reps. Clay Shaw (R., Fla.) and Jim McCrery (R., La.).
Wal-Mart gave $2,000 to Shaw, and Target, Penney’s, Sears and Procter & Gamble each made $1,000 contributions. The NRF gave Shaw $5,000, and the American Apparel & Footwear Association’s PAC contributed $1,000.
“He was the sponsor of our retail depreciation legislation, and he has a very large impact on tax policy,” said Rob Green, vice president of government and political affairs at the NRF. “Our support is long-standing.”
Industry PACs supporting McCrery included: Sears, $5,000; Limited, $1,000; Target, $2,500; RILA, $2,500, and AAFA, $1,000.
“Chances are he will either be the chairman of the House Ways & Means Committee or the ranking Republican, depending on the outcome of the elections,” said Paul Kelly, RILA senior vice president of state and federal government affairs. “He is someone who has been solid on all industry positions throughout his career, and he is the kind of member we want to make sure remains in Congress.”