Report: 75 percent of corporate subsidies soaked up by richest companies
Citing a study conducted by taxpayer watchdog group Good Jobs First, Dave Sirota at PandoDaily reports that Fortune 500 companies have received $63 billion in subsidies from the U.S. government with 75 percent of those dollars going to just 965 major corporations.
The study, called “Subsidizing the Corporate One Percent” shows that those dollars are not going to the entrepreneurs, who are often cited as the ‘job creators’, but to established highly profitable corporations.
Good Jobs First’s study shows that the beneficiaries of these subsidies are often hidden beneath complex layers of holding companies, shell firms and ownership agreements. The group discovered that an incredible $110 billion — or 75 percent of cumulative disclosed subsidy dollars — are going to 965 large companies.
Fortune 500 firms alone have received more than 16,000 subsidies at a total cost to U.S. taxpayers of $63 billion.
Additionally, eight out of the top 20 firms receiving subsidies are not U.S. companies, meaning American taxpayers are subsidizing foreign firms.
Typically these government/private industry deals are promoted as “incentives” or “economic development” although there is little evidence that they result in job creation and may, in fact, hurt taxpayers.
Sirota provides samples of various U.S. companies who are receiving extraordinarily generous state and federal government subsidies including:
- ‘Free market’ promoting Koch Industries, who have received $88 million.
- Tech giant Intel with 58 subsidies worth $3.8 billion.
- IBM, which has received more than $1 billion in subsidies
- Google’s $632 million and Yahoo’s $260 million, with most of both companies’ subsidies derived from data center deals.
- Microsoft has pulled in $95 million primarily from Washington State’s tax handouts.
- Dell, owned by Silver Lake Partners who collected $482 million in government handouts.
Included on the list is software company 38 Studios, owned by former MLB Red Sox pitcher and small government disciple Curt Shilling, which filed for bankruptcy in 2012 after being in business for 6 years and receiving $75 million in subsidies from the state of Rhode Island.
You can read the study by Good Jobs First here.
[rich pig via istockphoto]