Corporate Welfare

Editorial Cartoon by Robert Ariail
Cartoon provided by the article's author.

by Kerby Anderson, Contributing Author : America may be a divided country politically, but there are some issues where there is near universal agreement. That would certainly be the case with corporate welfare, or what many call “crony capitalism.” Progressives and conservatives are against it because the government favors some companies over other companies and because taxpayers are on the hook to help large corporations.

Brent Gardner argues in an op-ed column that it is time to end “the corporate welfare circus.” Not only is this a problem at the federal level (with tax loopholes, tax cuts, and carve outs), it has become an issue at the state level.

Boeing assembles jetliners in the world’s largest building in Everett, Washington. It announced a few years ago that it was looking for a location to build its new 777 plane. In order to keep Boeing from leaving, the state of Washington had to put together a $8.7 billion package, which is the largest such giveaway in American history.

There are many other examples. North Carolina sent $320 million to Apple and $250 million to Google so they would build data servers in the Tar Heel State. Kentucky gave $500 million in tax breaks and subsidies for Toyota and Ford auto plants. Nevada delivered $1.3 billion to Tesla Motors to build an electric-car-battery plant.

Akash Chougule (Americans for Prosperity) was on my radio program and made a good point. If a tax break was a good thing for one company, then it should also be good for all companies. Essentially, these state governments are making the case for cutting the tax rate and reducing intrusive regulation that prevents job growth.

Unfortunately, state governments seem all to willing to play favorites and pay certain companies so they will stay within their state borders or be enticed to relocate to their state. This is crony capitalism at its worst.
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Kerby Anderson is a radio talk show host heard on numerous stations via the Point of View Network endorsed by Dr. Bill Smith, Editor, ARRA News Service

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