Aid to Dependent Corporations
It seems people are quick to criticize the welfare system in the United States. However, there is another form of welfare that few are aware exists. This type of corporate welfare, termed "wealthfare," by Chuck Collins, the author of "Aid to Dependent Corporations," benefits corporations and the wealthy. Mr. Collins mentioned some very interesting facts with which I totally agree. His article helped me to understand how the rich continue to get richer, all at the cost of the United States taxpayer.
Chuck Collins brings out many instances of corporate wealthfare in his article. For example, since 1987, American Barrick Resources Corporation has been extracting gold from a Nevada mine. They have pocketed $8.75 billion but paid only minimal rent to the Department of the Interior (15). I have to wonder why a billion dollar corporation would need such discounts, if any at all, from the federal government.
United States
Corporation Street, Birmingham - Midland Metro wor...
Corporation Street, Birmingham - Exhibition BusIt seems ridiculous U. S. taxpayers should subsidize, in any way, a large corporation that is making billions of dollars.
Chuck Collins writes, "Wealthfare comes in five main varieties: discounted user fees for public resources; direct grants; corporate tax reductions and loopholes; giveaways of publicly funded research and development to private profit-making companies; and tax breaks for wealthy individuals" (15). Yet, you rarely hear protests about these five varieties of wealthfare; instead, you hear complaints about welfare which is designed to assist the ones who truly need help.
The hidden cost of wealthfare to taxpayers is staggering. The Office of Management and Budget estimates that the tax breaks for corporations and wealthy individuals "will cost $440 billion in fiscal 1996," compared to the $16 billion it costs the government annually for child support programs (15). If people knew the true cost of wealthfare, they may be...