Posted by Michael Sauers on December 10, 2023
Letter to Editor, March, 2011
Corporate welfare has been and continues to be abusive whether on the state or federal level. It has taken many billions of dollars away from initiatives that would benefit a majority of citizens. Education, health care, libraries, child care, affordable housing, parks/recreation, small business and transportation are a few examples. It affixes itself and contributes to other government programs that punish the poor, working class, and middle class. It helps fund weapons manufacturing and never ending wars. It ranks right up there with government fraud, negligence and waste. It is a cancer. Politicians, think tanks, non-profits, compromised government agencies and corporations lobby 24 hours a day, 7 days a week and 52 weeks a year to procure corporate welfare. Tax loopholes, opportunity zone giveaways, grants, low interest loans, phase outs of capital stock and franchise taxes, legislation and loan guarantees are the tip of the iceberg.
The definition of corporate welfare is simple. It is government (taxpayer) money going to corporations who are already wildly successful and profitable. (Think “fossil fuels” industries) As referenced above, it comes in a mess of forms. Do some research. Politicians call corporate welfare “incentives”. They usually claim benefits such as new jobs and increased tax revenues. Those, like the politicians, are a joke. They would happen anyway without corporate welfare. Think of all the times you have seen a bunch of back slapping, corporate cheerleaders holding shovels/checks/scissors. Again, do some research. Below is a letter addressing the issue. It was written in 2011 but is applicable today.
Editor,
Gov. Corbett’s budget proposal is unjust, inequitable and mean spirited. While Gov. Corbett is not hesitant about taking health insurance away from poor people (42,000) and slashing money from education, he is reluctant and reticent to address the corporate welfare issues that plague state government, as well as the costs of running the legislative and executive branches of state government.
The state general fund is underfunded partially because of corporate welfare programs such as the Delaware tax loophole, the KOZ program, no severance tax on gas production, the phasing out of the capital stock and franchise tax and grant money and low interest loans for economic development organizations. (Think CAN-DO or DRIVE)
This is the tip of the iceberg. I have asked my state representative and state senator to research a complete list of these programs. I would also like to see how much this costs the general fund. I’m not holding my breath. This is important because we pick up the tax burden. We pay more local, county and state and federal taxes. I am not opposed to business or a fair profit. I have owned successful businesses.
The Pennsylvania Legislature is also a burden on taxpayers. We all remember the pay hike fiasco. Issues such as the surplus cash fund (approximately$200 million), per diems, WAM, campaign finance reform, inequitable access by lobbyists, gifting by lobbyists and opening up state government are not being fully and adequately addressed by Go. Corbett. While enormous, this is not a complete list of legislative reform issues.
It is wrong for Gov. Corbett to ask the poor and middle class to sacrifice before he addresses the inequities of the tax and legislative systems. Attacking labor is despicable. For every sin labor has committed, capitalists and government have committed a hundred. I AM PROUD TO STAND WITH LABOR.
Making as large a profit as possible is the only obligation/rule of capitalists. Keeping labor costs as low as possible is a key part of fattening the bottom line. This means wages below a living wage, moving production around the country to cheaper labor markets, moving production out of the country to poverty wage markets and replacing labor with AI.
Corporations are making record profits and do not need corporate welfare to succeed. I STAND OPPOSED TO CORPORATE WELFARE!
Michael Sauers