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Government

Corporate Welfare is Receiving Some Necessary Scrutiny

(NYS) Recent analysis [pdf] of NYS subsidies to business in the form of tax credits and other give-aways of public money is gathering attention among tax-policy specialists and a highly acclaimed journalist from WNY. This analysis continues a decades-long trend showing that only very little or no benefit can be rightfully attributed to corporate welfare. One small excerpt demonstrates well conclusions drawn by many observers about handouts to business by government: “Over nine years, the state of New York gave businesses roughly $10 billion, or almost $1,400 from each household, in a jobs program that eliminated 175,000 jobs at an average cost of $57,000. And that’s just state-level subsidies, not those from industrial development agencies.”

Previous content by WNY-WJ about corporate welfare locally is available both here and here, especially focused on industrial development agencies in the Niagara Frontier region. This content is broadly consistent with the more recently produced and rigorous analysis cited above.

And so the status quo continues, where analysis and research show no provable public benefit from corporate welfare, but where at the same time, insufficient political will exists to end such programs. A boon to businesses with the right political connections, to their paid lobbyists, and to (their paid?) politicians.

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