Ever since retail giant Wal-Mart announced on June 30 that it is embracing an employer mandate as part of health care reform, the company has been criticized by some congressional Republicans, the U.S. Chamber of Commerce and fellow retailers.
And Republicans are probably even more unhappy with the direction of the company's political donations this election cycle.
Like many others in the business community, the company's campaign contributions have moved with the power shift in Washington to Democrats from Republicans. Wal-Mart's political action committee has doled out $108,500 to federal candidates and parties in the 2010 election cycle, with 69 percent to Democrats and 31 percent to Republicans, according to the Center for Responsive Politics. See here.
That is a switch from the 2008 cycle, when Wal-Mart gave out $1.24 million, of which 46 percent went to Democrats and 53 percent to Republicans. The change is even more pronounced when looking at the 2006 cycle, when the company's PAC contributed $1.29 million to federal candidates, of which 32 percent went to Democrats and 68 percent to Republicans.
Only one industry, the oil and gas sector, out of the top 50 industries that contribute money to federal candidates have given more money to Republicans then Democrats in the 2010 election cycle. The food and beverage and the chemical industries have given money equally to candidates of both parties, while every other sector has given more to Democrats than GOP candidates, according to CRP. See the chart here.
What's driving this for Wal-Mart are employer costs, say political observers. Wal-Mart has taken steps to ensure that a majority of its employees have health benefits and for competitive reasons would like to see other companies bear those costs as well. Others in the business community are concerned an employer mandate would cost too much and lead them to eliminate jobs.
Fifteen years ago, costs led some businesses, particularly those with big union health care plans, split off from the wider business community and supported President Clinton's efforts to reform health care.
The Associated Press on July 9 took an interesting look at the splits in the business community that are developing during this year's debate that will make it difficult for opponents to derail the Democrats efforts. See story.
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