People For the American Way

New Hampshire Budget Battle Highlights How Big Money Affects Fiscal Policy

 In our current political landscape, moneyed interests frequently use their financial leverage to impact policy. For instance, Wall Street banks lobbied against a bill introduced by Sen. Elizabeth Warren that would help relieve students of their loan debt. For every dollar the fossil fuels industry spends on lobbying, it receives $103 in government subsidies. Now in New Hampshire, special interests are looking to change the state’s longstanding fiscal policy in their favor.

 New Hampshire Representative Timothy Smith credits the state’s ability to stay afloat financially without imposing a sales or income tax with its substantial business taxes, which bring in sizable amounts of revenue. However, that might change with the introduction of a bill by 13 Republican senators that would significantly lower the business tax, creating a hole of $90 million in the budget. Rep. Smith connected the introduction of this legislation to the fact that special interest groups, many of which would benefit from this change, spent over $900 thousand in New Hampshire’s legislative elections last year.

 Not surprisingly, New Hampshire residents are unhappy with the growing trend of big money influencing politics. Over two-thirds of the state’s voters believe that a constitutional amendment that would overturn decisions like Citizens United should be implemented. Sixty-nine state localities have passed resolutions calling for such an amendment, and over 120 small businesses are hosting Stamp Stampede stations, where patrons can stamp phrases like “not to be used for bribing politicians” on their bills.

 Rep. Smith co-sponsored a bill that called for an amendment to get big money out of politics, which passed in the New Hampshire House with bipartisan support. In addition, New Hampshire Governor Maggie Hassan dismissed the business tax reductions as “unpaid for tax cuts to big corporations” that would “put corporate special interest ahead of New Hampshire's families.” Officials in the state government are listening to their constituents’ concerns about the harmful effects of big money in politics.

 “Our constituents are trying to tell us something. They’re tired of their government serving lobbyists rather than citizens,” said Rep. Smith.

Tags:

Citizens United, money in politics, Timothy Smith