- Capitalism and Alternatives -

The numbers on corporate welfare

Posted by: Farinata ( L'inferno ) on January 27, 19100 at 17:05:26:

In Reply to: The myth of Corporate Welfare. posted by MDG on January 27, 19100 at 16:31:04:

: : : : "Defense" is another form of corporate welfare.

: : : Keep up the cheerleading for corporate welfare, Norman. You'll remind us of what's up.

: : "Corporate Welfare", another buzz-word, in this case applied to companies that design, test and develop weapons systems for national defense. Do you suggest that these companies not be compensated for their goods? Do you really want the people who work for McDonnel Douglas and Lockheed and General Dynamics to work for nothing? Isn't that a bit far-fetched even for you?

: You're right, Frenchy, there's no such thing as corporate welfare. When the U.S. Dept of Agriculture subsidize's Burger King's advertising overseas, it's merely compensating Burger King for...for...well, you tell me.

Some relevant figures;

Total amount in US$ spent on 'welfare' (both direct and indirect) in 1996;

$130 billion.

Total amount in US$ cost to the US Government in 1996 for not tying up a few loopholes in existing tax laws;

over $130 billion.

Total subsidies given to US corporations in 1996 in the form of tax-free gifts;

$170 billion.

Total costs sustained by US Government in 1996 due to waste and fraud in the US military;

$172 billion.

Total estimated government expenditure on aid to non-dependent corporations in 2000;

$195 billion.

Percentage reduction in the annual bill of the average American taxpayer if loopholes in the tax laws were closed and 'corporate welfare' was stopped;


(The last two were testified to in front of a US House Committee on 30/6/99.)

In other words, Frenchy, if you didn't fund free lunches for corporates out of your tax, it would go down by a fifth per year.

That's what MDG means by 'Corporate Welfare'.


(Another interesting aside; the GOP's 'Contract with America'; one of the most savage attacks on the welfare state in modern history, also wanted to legislate on corporate tax breaks - it wanted to increase the budget for corporate tax breaks per year by $100 billion...)

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