Saturday, I wrote an article about how corporations, especially financial institutions, are seeing record profits while workers and consumers continue to struggle.
Corporations also are reaping gigantic benefits from the tax breaks and incentives they’re receiving from state and local governments who via to get the companies to move to their jurisdictions.
Local governments give more than $80 billion a year in incentives to businesses, according to an article in The New York Times, which pointed out these companies as leaders of the pack:
Far and away the most incentive money is spent on manufacturing, about $25.5 billion a year, followed by agriculture. The oil, gas, and mining industries come in third, and the film business fourth. Technology is not far behind, as companies like Twitter and Facebook increasingly seek tax breaks and many localities bet on the industry’s long-term viability.
Be sure to read this article. It’s eye opening that billions of dollars that states and local communities need to prop up their sagging budgets are being given away to corporations who are making record profits.
Also, in the discussion of sequestration or the “fiscal cliff,” Republicans and the business community are calling for cuts to programs that help people such as Medicare, Social Security, and Medicaid. They call these programs “welfare,” but they say nothing about government incentives and tax breaks, which are corporate welfare.
I applaud The Times for researching and reporting on this important topic.
American consumers who need assistance shouldn’t be made the brunt of budget cuts while corporations benefit from huge tax breaks and other incentives.