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Taxpayer Assistance to Corporations Means We Need to Cut Food Stamps

Updated on June 20, 2014

Since at least the days of the rail barons, governments have worked with corporations to give a helping hand in low rents, cheap land passage, cheap water rights, reduced regulations and other accommodations in order to help business succeed. And it gets better and better. Corporations get tax holidays from governments to attract jobs which puts the burden to pay for the infrastructure used by these corporations on lazy workers and undeserving lower class taxpayers. But while luring a company away from its current location may be of benefit to the state in which the company relocates, it is clearly of no help to the national economy.” Thus, we get the people to pay for some of the operating costs of corporations, and that keeps America strong. Otherwise, the poor and middle classes would selfishly spend their money on rent, food, heating and other wasteful items.


The American people need to step up and pay for infrastructure needed to make a factories accessible and functional, i.e. profitable. Total tax revenues are reduced in the nation by these tax giveaways, and that leads to less government spending in the economy. And as we all know, less government spending means less socialism. So it’s a win-win; companies get richer and municipalities have less money to enable the poor in being poor. “…As a result, incentives can cause businesses to consume more energy or infrastructure resources than they otherwise would, and can contribute to excessive sprawl, traffic congestion, pollution, and other negative outcomes.” (ibid) So, as tax revenues decrease, infrastructure costs increase. Did I say “win-win”?

So that proves it; tax cuts create jobs. It makes our nation strong. Look at how well China is doing while 482 million (36% of the population) live on less than $2 a day. If the Chinese can live on less than $2 a day, so can Americans. Lower wages and corporate giveaways inoculate the U.S. against infections of socialism.


“When the automaker released a list of factories it was closing during bankruptcy three years ago, communities that had considered themselves G.M.’s business partners were among the targets...Yet at least 50 properties on the 2009 liquidation list were in towns and states that had awarded incentives, adding up to billions in taxpayer dollars, according to data compiled by The New York Times.” What these towns and cities must remember is that G.M. did this for their own good.

And Hollywood cashes in too, for the good of the nation. “The Manhattan Institute for Policy Research, a conservative group, found that the amount New York spends on film credits every year equals the cost of hiring 5,000 public-school teachers.” The noble and patriotic film industry gets public support to fund their money making entertainment enterprises. Then we spread our patriotic message of explosions, gun battles, car chases, and animated penguins, not to mention the joy of consumerism and unbridled capitalism, around the world.

Corporations have utilized the fear of jobs moving overseas or to other states to gain much needed concessions in the United States. States and cities compete against each other over valued jobs, and this makes them more suited for investment. Texas has given over $19 billion in incentives to corporations, more than any other state. That is because Texas is the most American and most patriot state. From the beginning of our nation in 1776, Texas has led the way in creating low income jobs.


States and cities competing over incentive packages for corporations leads to cost cutting. For example, Kansas gave $36 million to AMC Entertainment then cut their education budget by $104 million. By giving companies tax incentives, we can go after our bloated education budgets. By cutting school budgets, we can determine which teachers, and students, can survive on less. It prepares our education system for the modern world.

Wise union leaders have joined in to get concessions from their workers in order to contribute to the great cause. The leadership of the International Association of Machinists (IAM) joined with Boeing executives and Washington’s Governor to push through a concession passage from Puget-Sound machinists. Boeing used the threat of moving their 777 production to black-mail people to vote for the concessions. Black-mailing union workers into voting for the package is a great ploy, especially in a failing economy. In fact, “…it was clear that the local officials had no answer to the company’s threats to shift production and destroy thousands of jobs. Under these conditions, large numbers of workers reluctantly voted for the deal.”

Moreover, Boeing has been making record profits and its stock rose 80 percent in November. (ibid) Clearly, any success the company has is to be shared with investors, large stock holders, and CEOs, not workers. Boeing bought back $10 billion in stock and paid $2 billion in stock dividends while negotiating with unions for concessions from the IAM. What a well run company! They were so certain of getting their deserved concessions, that they made these payouts to investors at the same time they were negotiating with workers.


One of the first factory worker concessions came from Chrysler workers in 1979. These concessions became a model for other concession extraction actions. Construction workers also made concessions in the late 70s, early 80s as a way to stop work from being transferred to non-union work groups that companies helped set up.The only thing we hate more than immigrants is unions. So if we have to dangle a few immigrants in the faces of union workers for them to hate and fear in order to get concessions, we will and do it.

We are so good at getting what we want from the proletariat. “Tax incentives for investing offshore plus free trade plus deregulation devastated jobs in the U.S. economy beginning in the early 1980s, and continuing ever since…More than 10 million jobs have been offshored ever since.” (ibid) We get concession, then move the jobs anyway. Unions should have consulted with Native Americans about this reneging on agreements. I’m glad they didn’t.

If people want jobs, they should pay up. “Companies and government officials increasingly view the creation of jobs as an expense that should be subsidized by taxpayers, private consultants and local officials said.” Even location specific industries, industries that depend upon serving cities such as hotel chains and big retailers, have been getting incentives. That includes movies that depend on locations for movies. Oliver Stone got $10 million in tax credits to make “Wall Street,” for example. When discussing subsidies, Stone defended film subsidies by saying it’s “...basically the way business is done. I don’t understand what the moral qualm is.” The practical benefits can be easily seen. Billions of dollars in incentives are being given to companies while states cut local services to the undeserving slackers in society.

In the long run, all the concessions, including the recent cuts to food stamps, unemployment and potential future cuts in Social Security will help the jobs creators in America, that’s what it’s all about. And any libtard that thinks it’s inhumane to cut food stamps in the midst of a crisis should think how hard it is on Congress to enact those cuts. And liberals say we have no empathy.


Concession have now targeted lazy, under-worked public sector workers. In California, 193,000 state workers have had to make concessions, paying more for their health care, taking furlough days, reducing the guaranteed 1% cost of living adjustment to .5%, and so forth.

An increase in calls for public sector union concessions occurred when several governorships around the nation went to Republicans in 2010, most notably in the former union strongholds of Michigan, Wisconsin and Ohio. There were also, thankfully, Republican majorities in the state legislatures of those states. That allowed these governors to attack collective bargaining (talking to union liars is dirty work we shouldn’t have to do) and ask for furlough days and other concession that socialist Democrats might not have been so quick to call for.

Concessions and layoffs have also occurred in Democratically run states such as Iowa, Massachusetts and Pennsylvania. If Republicans hadn’t led the way and made such popular cuts, Democrats wouldn’t have done it too. Corporations get their billions in tax cuts and welfare from municipalities, and cuts are being made to public services and workers are being laid off. Jobs that people had are being replaced by jobs for corporations that are under no obligation to remain. And as we know, only the private sector creates jobs.

Enterprise zones help struggling communities improve their economic standing through government and corporate partnerships. It is another corporate giveaway that at the very least, helps a few large corporations. The tax giveaways mostly go to large companies with assets of more than $1 billion such as Wells Fargo and Levi Strauss. And they’ve earned it.

The zones give special tax breaks, including:

  • • Hiring Credits – up to $37,440 or more for each qualified employee hired;
  • • Up to 100% Net Operating Loss (NOL) carry-forward. NOL may be carried forward 15 years;
  • • Special tax breaks on sales tax for machinery and machinery parts;
  • • Banks that lend to Zone businesses get a net interest deduction for those loans; and
  • • Unused tax credits can be applied to future tax years, stretching out the special tax break other businesses do not get.

Corporate giveaways are keeping the U.S. great. Soon, American workers will learn, like the Chinese, how to live on $2 a day. However, we must constantly resist creeping socialism in the form of healthcare, minimum wages, equal pay laws, and health and safety regulations. But if we stay the course, the halcyon days of 16 hour work days, company towns, and child labor will be ours to celebrate once more.

Tex Shelters


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    • profile image

      Larry Wall 

      4 years ago

      I will agree with you that the competition among states to attract new businesses and industries has gotten completely out of control with incentives. The same is true for attracting sports teams.

      I do not want to live as people in China do. Part of your hub is the old and overused complaint about corporate executives getting big salaries, benefits, etc. Most likely, they are overpaid, but collectively, those salaries, as big as the number may appear to be is not going to rebuild our infrastructure.

      The issue is neglect. A building is built. It is suppose to last 25 years before major renovations are needed. Thus minor maintenance issues are ignored and the building becomes unusable in 15 years. Most of that can be attributed to political pork barrel politics and I put equal blame on the governments that give and the private sector that accepts.

    • EGamboa profile image

      Eileen Gamboa 

      4 years ago from West Palm Beach

      Also sharing of Facebook. Good research.

    • cathylynn99 profile image


      4 years ago from northeastern US

      shared on facebook

    • Mark Lees profile image

      Mark Lees 

      4 years ago

      A great hub highlighting the massive inconsistences in laissez faire capitalism which apparently runs the world so fairly.

      Voted up.


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