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Tax Breaks for Business = Budget Cuts for Schools

September 24, 2013

Common Dreams blogger Paul Buchheit posted an essay titled “Add it Up: The Average American Family Pays $6,000 a Year in Subsidies to Big Business”… $6,000 that either could have gone into their pockets or, in at least the case of $80,000,000,000, gone into State coffers to help fund schools (see the second bullet). Here’s where the $6,000 figure comes from:

  • $870 per year in FEDERAL grants, as reported by the libertarian  Cato Institute.
  • $696 per year in State, County and local subsidies as reported in a New York Times investigation.
  • $722 per year for bank interest rate subsidies as reported by  Huffington Post.
  • $350 per year for retirement fund bank fees, as reported by Demos.
  • $1268 per year for overpriced medications according to economist Dean Baker.
  • $870 for corporate tax subsidies according to the Tax Foundation.
  • $1231 for revenues sheltered abroad based on an analysis by U.S. PIRG.

So while many of us bemoan the federal, state and local taxes we pay, few of us appreciate how much of our taxes backfill corporate welfare. If you want to be especially appalled, look at the the map in the NYTimes article cited above and you’ll see that five states who cut school funds because they lacked adequate funding for schools (TX,MI, OH, FLA and PA) gave tax incentives to corporations worth $37,810,000,000 with TX leading the way with $19,100,000,000 in subsidies for business while cutting school funding by $5,000,000,000. You don’t need an advanced degree in mathematics, economics, or ethics to see that this is unfair and unjust.

 

 

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