Several months ago, a friend and I were discussing a mutual acquaintance from college. The woman had divorced her husband after 15 years of marriage and he was arrested for securities fraud shortly after. He subsequently went to prison. Our classmate confided that she knew they were having financial problems prior to filing for divorce…
An even more insidious example of corporate welfare occurs when corporations don’t pay their workers a living wage. As a result, those workers often 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.
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, there’s 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.