Washington more open to business than usual

US business groups are looking for another leap forward for their agenda from Capitol policymakers - in everything from new legislation to the appointment of conservative judges and shifts at key regulatory agencies.

In what could be the most business-friendly climate since the days of President McKinley, President Bush and the GOP-controlled Congress are moving to extend corporate tax breaks, pass pension reforms, allow oil drilling in the Arctic National Wildlife Refuge, and limit lawsuits - including a settlement of asbestos litigation that has driven 70 companies into bankruptcy.

Most encouraging to business lobbyists are prospects for a less visible agenda: a lighter hand on regulation well into the future. The resignation of William Donaldson as head of the Securities and Exchange Commission, effective June 30, sent a signal to Wall Street that the post-Enron crackdown on corporate accounting tricks may be winding down. His proposed replacement, Rep. Christopher Cox (R) of California, is expected to be open to business concerns.

"On balance, this is as good as it gets for business," says John Pitney, a political scientist at the Claremont McKenna College in Claremont, Calif.

Supporters say these changes can help fuel a new economic expansion by reducing burdens on America's job creators. Critics worry about impacts that could range from rising federal deficits to weaker protections for consumers, workers, and a fragile wilderness.

The pro-business momentum is accelerating, analysts say, in part because the steps are easier to take in the lower-publicity atmosphere of a nonelection year. Another factor: The finances of ordinary Americans have become increasingly linked to corporate fortunes.

"There's been a tremendous underlying shift that's really changed the behavior of both parties - stock ownership," Mr. Pitney says. "A majority of Americans now own stock either directly or through pension funds. If you look at the electorate, it's more than two-thirds. That's much higher than it was a couple of decades ago. Increasingly, people don't see a business agenda as separate from their own well being. They see it as part of their own."

Democrats are playing a role alongside Republicans. Senate minority leader Harry Reid meets biweekly with "Democratic-leaning" business lobbyists. He backed bankruptcy reform and allowed a vote on class-action lawsuit reform, even though he opposed the bill. Democrats are sponsoring legislation to extend government-backed insurance against terrorism, set to expire at the end of this year - a move the White House has yet to decide on. After 9/11, many businesses in major cities were unable to purchase insurance for losses that might occur from attacks.

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