corporate welfare?

stevepaa · 03-10-2005, 01:10 PM

my comment
"Don't want to change this thread, but what kickbacks and corporate welfare are you talking about?"
shaun 84 targa
"That's a new thread! Please start one on corporate welfare, we'll see what happens. There is so much information on this topic and Boeing, Lockheed Martin, etc. are all key players. It should be interesting."

I'd like to hear what some term kickbacks or corporate welfare.

gaijindabe · 03-10-2005, 01:15 PM

You mean like tax free municipal bonds?

Oh, how about state income tax being deducted off of federal returns??

Sorry, wrong kind of kickbacks...

Superman · 03-10-2005, 01:19 PM

The federal governmetbn continues to HEAVILY subsidize the tobacco industry, while at the same time taxes paid by consumers of tobacco products continues to rise sharply. I think of this as an example.

Superman · 03-10-2005, 01:29 PM

Here are some others:

"In 1991 and 1992 Sunkist Growers, Inc. received $17.8 million to promote citrus products, according to Agriculture Department figures. The Department gave the American Soybean Association $10.4 million in 1992 to promote soybeans. In 1991, Gallo Wines received $5.1 million to promote wine, M&M/Mars received $1.1 million to promote candy bars, the Campbell's Soup Co. received $450,000 to promote V-8 Juice and McDonald's took $465,000 to promote Chicken McNuggets. "

"Another form of corporate welfare is the government's failure to charge reasonable fees or sales prices for mining minerals on publicly-owned land. Perhaps the biggest beneficiary is the American Barrick Resources Corp., based in Toronto. Since 1987 the company has extracted $8.75 billion (yes, billion) worth of gold from a site in northern Nevada that is the property of the American people. According to the Natural Resources Committee, the federal government is now preparing to sell the land to American Barrick for all of $15,000. By the way, the company's founder paid himself $32 million in 1992. "

"U.S. taxpayers had spent $32 million over 15 years to develop Taxol, an anti-cancer drug. Bristol-Myers Squibb was provided extensive government data and exclusive commercial rights to Taxol in 1991 at which time it began charging patients $986 for a three-week's supply. "

"This year (1994), taxpayers will spend $51 billion in direct subsidies to corporations and lose another $53.3 billion in tax breaks for corporations, according to the Office of Management and Budget and Congress's Joint Committee on Taxation. This $104.3 billion give-away to businesses contrasts with the $75.1 billion total cost of all federal welfare programs for individuals, including help for the blind and deaf, drug and alcohol treatment, assistance to the handicapped and elderly, care for the mentally retarded, children's vaccination and immunization programs, food stamps (50% of which go to children), and so on."

gaijindabe · 03-10-2005, 01:53 PM

Flax tax - not a tax code that looks like phone books for a dozen municipalities. That is the only way to fix this. You cant fight human nature.

Superman · 03-10-2005, 02:11 PM

Gaijindabe, you're scaring me. If you're cleverly trying to get me to make conservative arguments for you guys, it's working. Tax breaks are indeed a nice way to encourage investment in certain areas. Let's tak, ummmmmm....

Deduction for home mortgage interest. I hear talk about various investment strategies and I'm thinking: Okay, the system allows me to throw a few thou on the table for closing costs, and then "own" a six-figure asset. I get to keep the appreciation on the increased value of the property. So, in one year I can recover my investment. In just a few years I can earn a rate of return in the neighborhood of 200 to 300%.

gaijindabe · 03-11-2005, 05:20 AM

Supe - you also get hit with the decreased value of the property if the market falls.. If you dont sell, you still need to pay that note.. (A lot of folks are about to find this out.)

Even if we move to a flat tax (either income -or- VAT) I see certain goodies not going away. One of them is the deductibility of home mortgage interest.. Maybe it could be capped?

But a political process whereby $1 worth of lobbying buys you $100 in tax breaks/headouts is not good for any economy.

Superman · 03-11-2005, 05:43 AM

Who are you and what have you done with my friend Gaijindabe? Wayne, someone has stolen Gai's password.

legion · 03-11-2005, 07:12 AM

I agree that the tax code is out of hand. The state of Illinois has given handouts to Boeing and Mitsubishi (who is still flailing miserably). For a tax code that aspires to equality, it has truly proven that some people (and organization, and corporations) are more equal than others...