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GOP-leaning businesses to form a 527 group

The Hill reports:

The Bush-Cheney political operation is working with business groups to help President Bush overcome the impact of pro-labor coalitions that have sprung up since the enactment of campaign finance reform legislation.

The business groups have devised an ambitious plan to counteract the anti-Bush forces that have already mustered a $10 million dollar pledge from Wall Street financier George Soros.

Ken Mehlman, who left his post as White House political advisor last year to oversee the Bush-Cheney re-election campaign, is playing an important role in organizing the new effort.

Now that the law bars the use of most forms of so-called soft money in election campaigns, a large segment of the business community appears to be turning more and more to a labor union model that entails direct advocacy among employees, some of whom also could be union members.

The campaign finance laws require the group to maintain at least a semblance of nonpartisan independence, but there is no question that it favors Bush’s re-election in November.