A surprising number of my friends and acquaintances absolutely agree with Mike Harris when he says he wants to kick those lazy free-loaders off the welfare roles and put them back to work. Why should the government subsidize able-bodied adults who should be out there working? Why am I working hard just so my tax dollars can pay for you to have a good time?
Maybe I agree, maybe I don’t. The thing is, I don’t think most people realize how much a smoke screen this issue is.
The thing is, when the government writes a check for $450 to Mabel Smith (not a real person) and her two children because she doesn’t have a job and needs to pay for her apartment and food, we cry “hand out”! Welfare bum! Parasite!
But when a corporation receives a tax exemption…. we get confused. The government doesn’t give Molson Breweries, for example, a check, so it isn’t a handout… or is it?
You tell me: what’s the difference? There isn’t any. If Molson owes the government $10 million in taxes on it’s net profits and the government says, hey, tell you what, pay me $5 million instead, what we have is the government giving Molson’s $5 million dollars as surely as if they handed it to them in small denominations in a little black briefcase. If it was true, this would be a massive government “hand-out”. It would be unfair.
Well, the government does this all the time. It does it when it allows corporations to deduct the cost of renting a box at the Skydome as a “business” expense. It does it when it allows corporations to pollute the environment without paying the cost of cleaning it up. It does it when it uses tax money to pay for sports stadiums, or when it defers taxes on a new factory, or subsidizes the cost of electricity for aluminum plants. It does it when it builds highways and bridges for the cars manufactured by Chrysler, GM, Ford, and Toyota. It does it when it helps bail out the banks that made stupid loans to third world despots who used the money to buy weapons from American manufacturers. It does it every time two businessmen go out for lunch and bill their expense accounts.
The most egregious example of this kind of lavish government subsidy of the rich is, of course, professional sports. The Minnesota Twins are, at this moment, demanding that the hardworking taxpayers of the State of Minnesota fork over about $400 million to pay for a new stadium for the Twins. The owner of the Minnesota Twins is a billionaire. But, he weeps, he can’t afford a new stadium. The old stadium, built to last 30 years, is only 15 years old, but it doesn’t have a private entrance for the boxes, you see, so those rich people actually have rub shoulders with ordinary plebes on their way to their exclusive, private, privileged seats.
At the same time, these idiot owners are offering their players contracts for up to $100 million over seven years. Everyone on the face of the earth knows that this is insane, but most people seem to think that it doesn’t directly affect them because they don’t go to many professional sporting events and if the owner wants to squander his money like that, so be it. The truth is though that you and I are paying Joe Carter $6.5 million to hit 25 home runs and bat .240 this year, because we paid for the Skydome with our tax dollars and the money that the Blue Jays didn’t have to pay for a stadium was thereby freed up to pay for their players. Just to add insult to injury, they gave the exclusive food concession rights to McDonald’s so they could charge twice the regular price for a hot dog. You would think that since we paid for the stadium we could at least get decent food at a fair price. And, of course, McDonald’s is thereby getting a government subsidy. Where are all the free market believers when it really matters?
This is madness. This is insane. This is the product of a society that is full of macho sports freaks who get visibly upset when they hear about a welfare mother spending $30 of her money on booze and cigarettes instead of food but stare with envy when see a basketball star show up with his two bodyguards. What that welfare mother should really do is learn how to play baseball.
The solution is simple. The reason Minnesota even considered subsidizing the stadium for the Twins was the threat to move the Twins to another town that would be willing to pay for a stadium. (Minnesota turned them down). It should be illegal for any town or any state or province to subsidize, with tax dollars, a professional sports stadium. All of the other subsidies should also stop, including “hidden” subsidies, like the costs of dealing with environmental damage caused by factories and industries.
Every corporation should be required to clean up after themselves– if they complain that they can’t afford to do this, they shouldn’t be in business. Should car manufacturers pay to build roads? They’ll scream bloody murder. They’ll say that it would make cars too expensive. Well, isn’t that a thought! You mean the real cost of cars is far higher than the sticker price? How about the cost of bodily injuries caused by speeding? Maybe we should have built up the public transit services instead of the highways. Maybe we should have more trains and buses today and less Firebirds and Intrepids. Read the history of the development of our cities: this idea is not as far-fetched as you think.
Finally, no bank– including the IMF– should be allowed to loan money to any government that is not certifiably democratically elected. Why should the people of Brazil or Argentina pay for F-14 fighter jets ordered by the illegal governments that ran those countries in the 1970’s? Do you know what those jets were used for? Nothing. Do you know where the money is coming from to pay back those loans? It’s coming out of the schools and hospitals and development projects that are needed to help the average people of these countries survive.
Either that, or we should learn to shut up about welfare recipients.