Industries Resist and Court Obama at Same Time

By ELIZABETH WILLIAMSON

WASHINGTON -- Industries from coal to venture capital are pushing back against regulations and taxes proposed by President Barack Obama and congressional Democrats, saying the plans will hurt businesses that already are struggling.
But lobbyists for all these groups are treading carefully, worried about risking Democrats' support for favors their industries will want down the line.
Ethanol interests are working to shape a clean-burning fuel proposal in Washington as they fight a similar effort in California. The coal industry has organized a grass-roots campaign criticizing the stimulus plan's emphasis on alternative fuels, while pressing for money to develop clean-coal technology.
The National Venture Capital Association hopes to defeat a budget proposal that could more than double the tax on venture-capital profits. But venture capitalists have high hopes for another provision that would eliminate the capital-gains tax on some small-business investments.
Venture capital "is long-term, patient investing alongside the entrepreneur...not the area you want to be mucking up," said Mark Heesen, the association's president. But "there are many very good, positive things that this administration has done."
Coal-industry backers in Ohio last week slammed Mr. Obama's proposal to tax the industry, even as operators praised his support for other efforts. "President Obama should be commended for his continued pledge to invest in clean-coal technology and to build five commercial-scale, coal-fired power plants," said Mike Carey, president of the Ohio Coal Association. "However, that commitment seems like mere lip service to the coal industry," considering "an extraordinary 'energy tax' on America's coal operators."
The travel industry is fighting congressional and administration proposals to limit lavish travel by companies that receive federal dollars -- even as it asks for a government-backed program to promote U.S. tourism abroad.
A multimillion-dollar advertising campaign running in the Washington print media slams "political rhetoric and short-sighted legislation" that would limit luxury travel and meetings by companies whose financial problems have prompted taxpayer bailouts.
The U.S. Travel Association is spearheading the campaign. The group said high-end business meetings and incentive trips, some of which have been criticized by Congress and Mr. Obama as ill-advised and wasteful, are the lifeblood of the industry, generating more than $100 billion in annual spending and creating one million jobs. Citing a recent industry study, the travel group said that 20% of companies that have not received taxpayer help have nonetheless canceled events and meetings, fearing public criticism.
The ads take aim at both Congress and Mr. Obama. One ad tells lawmakers, "Want to lose one million more jobs? Just keep talking."
This week, executives including Marriott International Inc. Chairman and CEO Bill Marriott, Disney Parks & Resorts Chairman Jay Rasulo and Jonathan Tisch, chairman and CEO of Loews Hotels, will press their case on Capitol Hill and with the administration.
Geoff Freeman, the travel association's senior vice president, said the group will "spend whatever it takes" to roll back the legislation and persuade the administration instead to adopt a set of guidelines for travel and meetings that keep spending within bounds.
At the same time, the group hopes Democrats will pass an initiative it has pursued for years: a government-backed program to lure more foreign visitors to the U.S. The Tourism Promotion Act, which the group has been pushing in Congress, would use a surcharge on foreign visas to pay for a sweeping travel-promotion program that includes a new government office responsible for boosting U.S. tourism.
The group's opposition to executive-travel limits "could be beneficial" to the promotional program's prospects, said Mr. Freeman. "It gives us an opportunity to help members understand the economic benefits of travel."
Write to Elizabeth Williamson at elizabeth.williamson@wsj.com