Wednesday, September 25, 2013

Corporate welfare: one $80 billion chunk


Would you like to give $700 to some big companies in your area?
(Hint: you already did, last year).

CommonDreams.org reports that U.S. states, counties and cities are giving about $80 billion a year to private companies This is money taken right out of the taxpayers' pockets….and we're not even mentioning all the federal tax benefits and handouts to businesses.


This corporate welfare takes the form of tax breaks and tax forgiveness for new installations, low-interest loans for construction and other economic development channels, often designed to "lure" a company to "build a new facility" that will "create new jobs."

The track record of these companies in actually creating the promised jobs is poor. Their success rate isn't great. Often, loans aren't repaid.

Details about the $80 billion in subsidies to business are in this New York Times report….and the Times says the total is almost certainly understated.

Now, $80 billion is about $700 per family. Imagine what you could do with that money.


What really bites is that many big corporations and companies who take these benefits are spending their own cash to pay for political activism that trumpets "small government," deplores our national debt and wants to cut benefits to poor people.

Why do we keep re-electing the politicians who approve this transfer of wealth from taxpayers to businesses?





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