The corporate pension refers to tax incentives, subsidies and other financial favors granted to companies by the federal government.
Corporate welfare can be broadly defined as any assistance provided by a government that gives a private company an advantage over others. In the United States, corporate welfare refers to any number of favors, costing billions of dollars each year, bestowed on businesses by the federal government. It includes, among others, tax exemptions, direct trade subsidies and various other forms of special favorable treatment.
Most corporate benefits have to do with tax incentives, such as lower tax rates or, in some cases, the ability to transfer income to shareholders without the company paying taxes.
As with other forms of wellness, the concept is opposed by many individuals and groups. One of the main controversies regarding corporate pensions is the fact that, like other pension programs, it is unconstitutional at the federal level. The Constitution does not provide the authority for Congress to redistribute money collected through taxes in an effort to subsidize businesses or individuals. In fact, the purchasing power of Congress is specifically detailed and limited.
While entitlement programs ostensibly designed to help families or individuals are often described as “leveling the playing field,” those who support public assistance rarely apply this position to corporate welfare. In fact, he is as vague about corporate welfare as he is about other entitlement programs.
Corporate welfare is accused of not leveling the playing field in any way, but rather of providing distinct advantages to selected industries or companies at the expense of other companies and often consumers. Not only that, but the cost is astronomical, and the taxpayer has no say in which businesses will receive support. To make matters worse, some say the government seems to pick blindly when determining which sectors or companies will get a return on this huge investment.
Corporate wellness is not always recognizable in its many guises. Along with cash rebates, cash is also provided to pay for research and development, insurance, or subsidized loans. Favors also include acts of protectionism, protecting only certain US industries or businesses from foreign competition. This, of course, stifles free trade, limits other business, and means that Americans generally pay more for goods and services.
Many people believe that corporate welfare also breeds corruption. It often seems that those who make the biggest campaign contributions receive the biggest windfalls. In addition to money issues, certain industries sometimes have greater lobbying power when it comes to legislation. Can you think of any industry that has managed to persuade the government that the purchase of their product or service should be mandatory? In that case, you’ve just discovered another form of corporate wellness.