SARBOX...Dems Getting Smart, Reps Staying Dumb

Mallory Factor has the best analytical gutting of Sarbanes-Oxley in Saturday's WSJ that I have seen in awhile. He ties in all the disastrous effects that this law has had, and notes the sheer uselessness of the whole thing. What's more, he notes that it seems to be Democrats that are cottoning on to the idea that reversing course, to whatever degree, on this law is bound to win friends in the business community. He's right and it indicates that Democrats are getting smart and Republicans remain dumb. This is such a winning issue with the business community and the Democrats can garner support from business without having to concede any ground where business traditionally would like them to, taxes and spending. So the Dems wouldn't have to promise lower or steady taxes and a tight grip on spending, and they can offer up a goody to business that is essentially costless to them - the sole reason for SARBOX was for Congress to appear to be 'doing something' and the political benefits dried up after the first election cycle subsequent to its passage. So retreating on it is politically costless, especially for Dems who are unlikely to have the media accuse them of a "sop to big business."

In a previous blog post I recounted how I asked Mike Pence (R-IN), who professes to want to repeal bad laws as much as he wants to pass good ones, if congress was prepared to address the negative consequences of SARBOX only to have him say that it wasn't on anybody's radar screen. That no Republican is talking about SARBOX is further evidence that congressional Republicans have lost all connection to their voters interests and are giving the game to the Dems for '06 and beyond. They've blown it on spending, they are in the process of blowing it on taxes and if they blow it on burdensome regulations, business interests will leave them at the polls like the Dodgers left Brooklyn.