information for practice

news & new scholarship from around the world

May 30, 2007

The Corporate Welfare State: How the Federal Government Subsidizes U.S. Businesses

The federal government spent $92 billion in direct and indirect subsidies to businesses and private-sector corporate entities— expenditures commonly referred to as “corporate welfare”—in fiscal year 2006. The definition of business subsidies used in this report is broader than that used by the Department of Commerce’s Bureau of Economic Analysis, which recently put the costs of direct business subsidies at $57 billion in 2005. For the purposes of this study, “corporate welfare” is defined as any federal spending program that provides payments or unique benefits and advantages to specific companies or industries.

Posted by Gary Holden at May 30, 2007 8:59 AM