Business Lobbying as an Informational Public Good: Can Tax Deductions for Lobbying Expenses Promote Transparency?

56 Pages Posted: 30 Aug 2013 Last revised: 13 Mar 2015

See all articles by Michael Halberstam

Michael Halberstam

Case Western Reserve University School of Law

Stuart Lazar

SUNY Buffalo Law School

Date Written: January 4, 2014

Abstract

The view that “lobbying is essentially an informational activity” has persistently served the suggestion that lobbying provides a public good by educating legislators about policy and the consequences of legislation.

In this article, we link a proposed tax reform with a substantive disclosure requirement to promote the kind of “information subsidy” that serves the public interest, while mitigating – at least to some extent – the distortion that may result from the imbalance of financial resources on the business side and other institutional contraints identified in the literature. We argue that corporate lobbying should be encouraged – by allowing business to deduct lobbying expenses – but only to the extent that the information subsidy that corporate lobbying supplies in fact educates lawmakers on complex policy issues. In other words, to the extent that lobbying supplies an informational public good, such information should actually be made generally available through full and timely publication, rather than inserted strategically into the legislative process at a time, and in such manner, that excludes others from using the information to assess the merits of proposed legislation.

Keywords: election law, legislation, tax, lobbying, disclosure, transparency, information, public law

Suggested Citation

Halberstam, Michael and Lazar, Stuart, Business Lobbying as an Informational Public Good: Can Tax Deductions for Lobbying Expenses Promote Transparency? (January 4, 2014). 13 Election Law Journal 91 (2014). Available at SSRN: https://ssrn.com/abstract=2317533 or http://dx.doi.org/10.2139/ssrn.2317533

Michael Halberstam (Contact Author)

Case Western Reserve University School of Law ( email )

11075 East Boulevard
Cleveland, OH 44106-7148
United States
646-285-6281 (Phone)

Stuart Lazar

SUNY Buffalo Law School ( email )

School of Law
615 O'Brian Hall
Buffalo, NY 14260-1100
United States

HOME PAGE: http://www.law.buffalo.edu/faculty_and_staff/dynamic_general_profile.asp?faculty=Lazar_Stuart

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