Congress should cut federal spending to reduce massive budget deficits. One target for reform should be business subsidies—often called corporate welfare—which total $181 billion a year, according to a new Cato study.
My article at National Review today summarizes 10 reasons to cut corporate welfare in addition to the taxpayer cost.
Corporate welfare
- is central planning, which does not work.
- creates collateral damage on the economy.
- divorces businesses from the needs of consumers.
- comes loaded with regulations that raise costs.
- displaces market-based funding and entrepreneurship.
- spawns wasteful bureaucracies of high-paid lawyers.
- is plagued by fraud and abuse.
- violates the American promise of equal justice under the law.
- encourages political corruption.
- generates public disgust at politicians and big business.