You often hear Trump and Republicans in Congress railing against so-called “welfare programs”
-- by which they mean programs that provide health care or safety nets to ordinary Americans.
But you almost never hear them complaining about another form of welfare that lines the
pockets of wealthy corporations.
We must end corporate welfare. Now.
There are several ways corporations get rich on the taxpayer’s dime. The most obvious
comes through subsidies or tax breaks for certain businesses or industries.
Consider the fossil fuel industry, one of the most profitable and privileged sectors
of the economy. Every year, oil companies get to deduct millions of dollars from their
tax bills for the cost of new wells, oil exploration, and other drilling and mining expenses.
It’s been estimated that repealing these special tax breaks would save taxpayers $39 billion
over 10 years.
Other examples of corporate welfare include billions in government subsidies for agricultural
conglomerates, pharmaceutical makers, tech giants and defense contractors. Other industries
don’t get these benefits. Meanwhile, most families don’t even benefit from tax credits
and deductions for childcare.
State and local governments are also handing out corporate welfare, often with no strings attached.
In 2013, for example, the state of Washington approved a record $8.7 billion
handout to Boeing in order “to maintain and grow its workforce within the state."
What did Boeing do? In the following years, it laid off more than 12,000 workers in the state.
State and local tax breaks for corporations are estimated to cost local schools almost
$2 billion a year in lost tax revenue. It’s argued they create jobs, yet nationwide,
not a single new job is created. At most, the jobs are merely moved from state to state.
Now, how do corporations get this corporate welfare? Well, follow the money. They spend hundreds
of millions on lobbying and campaign contributions.
Here’s an even more insidious example of corporate welfare.
When corporations don’t pay their workers a living wage,
those workers have to rely on programs like Medicaid,
public housing, food stamps and other safety nets -- which means you and I and other taxpayers
end up subsidizing these low wages so those corporations can enjoy even higher profits
for their executives and wealthy investors.
For example, every year, Americans spend an estimated $153 billion in taxes and on programs
to subsidize McDonald’s and Walmart’s low-wage workers.
Here’s the bottom-line: When corporations get special handouts from the government,
it costs the rest of us. We have to pay more in taxes to make up for these hidden tax breaks,
subsidies, and loopholes. In turn, we have less money for good schools and roads, Medicare
and national defense, and everything else we need.
So the next time you hear conservatives railing against welfare handouts for the poor, remind
them that we should really be cutting corporate welfare -- unnecessary and unwarranted aid
for dependent corporations.
What do you think? Should corporations get special breaks and subsidies? Let us know
in the comments.
If you liked this video, make sure to also watch our video on the myth of privatization.
As always, thanks for tuning in and please subscribe to this channel for more videos like this one.