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What is corporate welfare?

What is corporate welfare?
What is corporate welfare?

Many Americans depend on welfare to keep food on the table. Unfortunately, there is often a stigma associated with being a welfare recipient. But corporations often receive much greater benefits from the taxpayers with no stigma attached. Corporate welfare is much more costly to the taxpayers than social welfare, yet most people don’t give it a second thought.

There are many forms of corporate welfare in America. The largest one is subsidized low- or no-interest loans for corporations and banks to cover the cost of doing business. These loans are made by the federal reserve, and it’s the taxpayers who foot the bill.

There are also various forms of tax breaks and loopholes that corporations can take advantage of. Bank bailouts alone cost taxpayers $700 Billion (that’s right, with a B), over eight times as much as the cost of food stamps in a fiscal year.

Corporations can also write off the costs associated with their private jets by saying it is necessary for security. These private jets still use public air traffic controllers that are paid for by commercial airline ticket purchases. So this loophole not only takes advantage of taxpayer money, but also fees associated with the cost of your airline tickets.

Another common way that corporations cash in on taxpayer money is through paying their employees low wages. Paying their workers low wages places the burden of feeding, clothing, and sheltering their families on the taxpayers through multiple social welfare programs. Walmart justifies paying low wages by pointing to low prices, but taxpayers are often left to pick up the slack.

There are a lot of ways in which corporations benefit from taxpayer money. To learn more, check out this infographic on the subject. You might be surprised how heavily the American taxpayers are subsidizing private corporations.