Lobbying and Politics Essay

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Dating back many decades, it appears that lobbying and politics have always gone hand and hand on any political stage. Lobbying has always had a strong presence in the legislation system. Lobbying is the process of offering campaign contributions, bribes, or information to policymakers for the purpose of achieving favorable policy outcomes. Conventional wisdom suggests that lobbying is the preferred mean for exerting political influence in rich countries and corruption in poor countries. The legislation is meant to benefit society and ensure that citizens are having their voices heard, instead of hindering them in favour of the multi-national corporations. Lobbying has a negative influence on legislations in both developed and developing…show more content…
This is astonishing as it benefited these companies as they saved hundreds of millions from taxes. This hinders the political process as it then causes an issue for the citizens as tax revenue from the lobbyers decrease, it leads to taxes being increased on everybody else. Among Fortune 100 companies, the ten that lobbied most in 2010 paid an average effective tax rate of 17%; the 80 that lobbied least paid an average of 26% (The Economist, 2014). Tax revenue is required by any government to be able to operate. In addition to tax increases on others, a reduction in overall spending and services by the government can be used to compensate for tax cuts obtained by the corporations who lobby. If in this situation of lobbied tax cuts, the government wants to sustain its spending, while not increasing taxes or the government, it is able to use debt in order to operate. Although this helps in the short time-period, the long-term affects can negatively affect the country. Throughout the national and state governments, public institutions like schools have been receiving decreased funding, particularly if their services are geared towards those who have no lobbying presence (Sager, 2012). This makes sense, as corporations who use lobbyists wouldn’t let their services be cut when there are ways to offset the costs onto
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