"Dems are the new Republicans"

This Newsweek columnist is always interesting. The Democrats are winning the fundraising battle this campaign cycle. And how do you think they're doing it? By out-probusinessing the Republicans. This trend doesn't seem like a good one to me.

http://www.newsweek.com/id/43346

NEWSWEEK
Oct 13, 2007
Dems Are the New Republicans
By Daniel Gross

Don't take this the wrong way. But everything you know about the link between business and politics is incorrect. For nearly the entire 20th century, a simple formula held: business people like Republicans and don't like Democrats. Republican politicians and voters heartily embrace free trade and lower taxes, while Democratic politicians and their constituencies cotton to protectionism and higher taxes. Over the decades, racial, ethnic and geographic realignments altered the shape of the national parties beyond recognition. But when it came to the wealthy, there was less movement than in the facial muscles of an over-Botoxed newscaster.

Until now. Democrats, who have never out-fund-raised Republicans in the modern political era, are kicking the tar out of their rivals this campaign cycle. Through the first half of this year, Democratic entities—congressional, presidential and party operations—raised $388.8 million, compared with $287.3 million for their Republican counterparts, according to The Wall Street Journal. In the third quarter, the top three Democratic candidates—Hillary Clinton, Barack Obama and John Edwards—raised 50 percent more money than the top four Republicans. The Democrats' funds aren't just coming from enraged readers of DailyKos.com who chip in $20.08 via the Internet. They're flowing in from people who can afford to throw $4,000 in post-tax income into campaign coffers. You know the Reagan Democrats, NASCAR dads and soccer moms. Now we have the Fed-Up CEOs and the Angry Yuppies.
[. . . ]
The financial and personal endorsements are partially a symptom of the business world's chronic trendiness. As the noted management guru Bob Dylan once said: "You don't need a weatherman to know which way the wind blows." Wall Street CEOs can read polls as well as they read balance sheets, and they like to be on the winning team. Also, many well-heeled donors give the maximum to several Democratic and Republican candidates—the way you and I might buy a few packages of Girl Scout cookies, and then toss a dollar into the Salvation Army bucket. For hedge-fund managers, maxing out to multiple candidates is a cheap hedge.
[. . . ]
With the exception of John Edwards, the Democratic candidates and their congressional allies have been loath to embrace measures that would alienate their new friends. The trial balloon floated earlier this month to enact a war income surtax, which would weigh heavily on high earners, was swiftly shot down. Closing the loophole that allows private-equity and hedge-fund managers to pay low long-term capital-gains taxes on the compensation they get for managing other people's money would be a popular way to pay for Democratic priorities. But last week Senate Majority Leader Harry Reid told private-equity lobbyists that Congress would move no such legislation this year. After all, it's primary season. And during primary season candidates must shore up their base.