In 19% corporate taxes. In addition very few

In 1975 only 175 corporations had lobbyists, but by 1982 nearly 2500 companies did. Political
Action Committees (PACS) increased from 300 in 1976 to 12000 in 1985. The big businesses
began to mobilize their pool of resources to affect their taxes, regulations, the middle class
Americans, as well as the wealthy. By 2011 there were 12,929 lobbyists dispensing $3.5 billion
per year on lobbying. A report showed that the top 200 lobbying organizations from 2007 to
2012 spent a combined $5.8 billion on federal lobbying and campaign contributions. This
resulted in $13 trillion in federal business and $3.2 trillion in federal support. Federal business is
defined as company business facilitated by the federal government such as federal contracts and
foreign sales through the Export-Import bank. Federal support for business includes Loans, loan
guarantees, grants, and the “bailout” money that saved the big banks. So for an investment of
$5.8 billion, the top 200 corporations received $4.5 trillion and paid an average of 19% corporate
taxes. In addition very few of these organizations payed the federal rate of corporate taxes of
35%.The total of lobbying, contributions and effective tax rates for three groups are shown as
follows: 200 $597 M $5.2 B $1.3 trillion $3.2 trillion 19%. There were 68 manufacturers in the
list of the 200 corporations. These corporations invested $196 million in contributions and $2.2
billion in lobbying. They received $862 billion in federal contracts and $43 billion in federal
support. A good example is the Whirlpool Corporation, who spent $1.8 million over 2 years to
get themselves lucrative energy tax credits. Many other manufacturers are making their products
more energy efficient, but Whirlpool lobbying gained them $120 million in tax credits. This had
a dramatic effect on their bottom line where the total of Federal State and foreign taxes paid were
negative $61 million in 2009, negative $64 million in 2010, and negative $436 million in 2011.

The large corporations have the advantage of using the tax code based on 43 tax credits,
deferrals, and exemptions. For the most part these credits and exemptions aren’t available to
small and midsize businesses. Who cannot afford to hire Washington D.C. lobbyists. From 2008
to 2010, according to Forbes Magazine, 29 corporations paid no federal taxes on their combined
profits of $164 billion. During this 3 year period, they also spent $476 million on lobbying which
gained them $11 billion in total tax rebates. The big corporations used Congress and the
democratic processes to get their way and achieve their financial goals.

After examining 49 financial corporations it showed that for an investment of
approximately $1 billion in contributions and lobbying the sector received $157 billion in federal
business and $2.5 trillion in federal support. Most of the federal support money was bailout
money from when the corporations got into serious financial trouble. After the financial crash of
2008 and during the subsequent Dodd/Frank legislation designed to try and regulate Wall Street,
there were more than 2000 lobbyists in the halls of Congress during 2010. In just the period
April through June of 2010 the financial special interests spent $126 million on lobbying the
financial reform bill. Lobbying is about a $3.3 billion per year industry with around 12,000
lobbyists. Lobbyists earn from $300,000 to $1,000,000 per year so it takes a fairly large
organization to hire them. An article in Quartz entitled how big business buys the right to dodge
US taxes says, “Congress doesn’t fill the tax laws with loopholes on a whim or even on accident
– it does so because companies and their lobbyists spend millions of dollars influencing
legislators to write and maintain a tax code that suits them”. A good example of how lobbying
works on specific issues is the American Legislative Exchange Council. ALEC brings state
legislators together with the country’s largest corporations—including Wal-Mart Stores Inc., The

Coca-Cola Company, FedEx, Amway, Exxon Mobil Corp., Koch Industries Inc., and leading
tobacco and pharmaceutical firms. ALEC’s 2,000 member legislators include a large share of the
country’s state senate presidents and house speakers. Legislators are invited to
conferences—often at posh resorts—where committees composed of equal numbers of public
and private officials draft proposals for model legislation. Over the past decade, ALEC’s leading
corporate backers have contributed more than $370 million to state elections, and over 100 laws
a year based on ALEC’s model bills have been adopted. Clearly lobbying has had a profound
impact on businesses in America. Corporations are willing to dish out billions of dollars to
receive tax breaks and federal support greatly exceeding the money they invested in lobbying.
This has negatively affected the middle class whom have had to pick up the slack and make up
for the low taxes and bailouts given to the larger corporations