Facts on Corporate Welfare
by Guest Blogger, 2/25/2002
Average taxpayers pick up an expensive tab for corporate welfare expenditures. Government spending for corporate welfare programs far exceeds government spending for social programs.
- Fact: Spending for corporate welfare programs outweighs spending for low-income programs by more than three to one: $167 billion to $51.7 billion (source: Aid for Dependent Corporations, from the Corporate Welfare Project and How Much Do We Spend on Welfare?, from the Center on Budget and Policy Priorities, FY 95 figures)
- Fact: Total federal spending on a safety net for the poor costs the average taxpayer about $400 a year, while spending on corporate welfare programs costs the same taxpayer about $1400 a year. (source: CBO figures)
- Fact: Over 90% of the budget cuts passed by the last Congress cut spending for the poor -- programs that ensure food for the needy, housing for the homeless, job training for the unemployed, community health care for the sick. (source: Center on Budget and Policy Priorities, Bearing Most of the Burden, 1996).
- Fact: Only 3.9% of total federal outlays go to programs
that solely benefit poor people.
Welfare programs for corporations do not play by the same
rules as welfare for people. Welfare benefits for individuals
and families are limited by strict eligibility requirements and
time limits, while corporations get corporate welfare benefits
regardless of wealth or accountability.
- Fact: Individuals and families must demonstrate need to receive benefits, while corporations with billions of dollars in annual income remain on the federal dole.
- Fact: Most social spending is in the form of discretionary spending, which is scrutinized in the annual budget negotiating process in Congress; most corporate welfare programs are in the form of tax expenditures, which go on and on since they are not subject to annual review by Congress.