During fiscal year 2006, the federal government spent $92 billion on corporate welfare. In the policy analysis “The Corporate Welfare State: How the Federal Government Subsidizes U.S. Businesses,” the Cato Institute’s director of budget studies, Stephen Slivinski, finds that billions of dollars are annually spent to cushion America’s largest companies at the taxpayers’ expense.
Slivinski defines corporate welfare as “any federal spending program that provides payments or unique benefits and advantages to specific companies or industries,” justified as remedies to market failure. Special interests argue that without subsidies, competition or an industry’s viability would be jeopardized. However, Slivinski demonstrates that the “market failures on which the programs are predicated are either overblown or don’t exist.” Large corporations including Boeing, Xerox, Motorola, Dow Chemical and General Electric have received millions in taxpayer dollars while playing paupers to the federal government.