Aid to Dependent Corporations

Essay by rickr747University, Bachelor'sA-, February 2008

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I would like to start off by saying that I very much enjoyed Chuck Collins article on Aid to Dependent Corporations, Exposing Federal Handouts to the Wealthy. It was written on a topic that really captured my attention. The article itself was short and to the point, with plenty of supporting facts which made for easy reading and comprehension for me. The use of so many matters of fact dollar figures is probably the greatest attraction of this article to me.

Growing up as part of our families farming and ranching business we had early exposure to the gross misuse of public funding for subsidies for the larger farms. It seemed that the larger your farming business the more lawyers you could retain to find subsidy money that coupled with your annual production would make an even bigger conglomerate every year.

I really like the options that Chuck Collins recommends as solutions to several of the issues.

His idea to decrease the amount of tax breaks to a very small percentage of the wealthiest corporations and individuals, (who can afford it) would increase tax revenues in the order of hundreds of billions of dollars. The additional revenues could be used toward funding welfare or other beneficial programs for the poor and needy.

I think one of the most profound points that Chuck Collins makes in this article is the point he makes about the Secretary of labor and the Budget Director identifying the need to reduce corporate welfare and that it would result in a $200 billion increase in tax revenue over a five year period. After the two cabinet members disclosed their plans to the president they where discouraged from further implementation because the president didn’t want to send the wrong signal to big party funders. This only increases my disdain for the politicians who know that there is something that can be done to improve our nation, but will not act because it is not favorable to the large party lobbyists. It makes much clearer to see that the lobbyist’s needs are always put before the public.

Overall, I believe that if more of the public where exposed to data similar to the article by Chuck Collins we may be able to persuade our politicians and corporations to be more socially responsible as well as accountable for the millions of dollars that they are given. It just does not seem like a fair formula of accounting. The less money you make the more you are accountable for taxes ect. and the more you make the more loopholes you are afforded for relief of taxes or expenses.

ReferencesLawrence, A., Post, J. and Weber, J., (1999). Contemporary Business Issues with Readings, (Based on selected materials from the Ninth Edition of Business and Society: Corporate Strategy, Public Policy, Ethics). Aid to Dependent Corporations Exposing Federal Handouts to the Wealthy p 399-401. McGraw-Hill Custom Publishing, NY.