Tag Archives: corporate welfare

WI: Republican Assembly passes $3 billion welfare bill

Source: Wisconsin State Journal

"The State Assembly on Thursday passed a $3 billion incentive package for electronics manufacturer Foxconn to build its first U.S. plant in Wisconsin on the promise that the deal with bring up to 13,000 jobs to the state. Lawmakers passed the legislation authored by Gov. Scott Walker 59-30, after the chamber's Republicans cheered it as a smart bet for taxpayers with massive upside for the state's economy and over Democrats' criticism that the deal is a gigantic gamble with state funds. … to make the plan a reality, Walker has proposed to give Foxconn $2.85 billion in refundable tax credits for jobs and for the construction of the campus. The company would be exempt from another $150 million in sales taxes, be eligible for lower utility rates and be exempt from some environmental regulations." (08/17/17)

http://host.madison.com/wsj/news/local/govt-and-politics/assembly-lawmakers-pass-billion-tax-incentive-package-for-foxconn/article_40adcade-bb66-509b-98c1-a42a0d4401f7.html

Federal court: Arkansas can block Planned Parenthood money

Source: Fox News

"A federal appeals court panel ruled Wednesday that Arkansas can block Medicaid funding to Planned Parenthood, two years after the state ended its contract with the group over videos secretly recorded by an anti-abortion group. In a 2-1 ruling, an 8th U.S. Circuit Court of Appeals panel vacated preliminary injunctions a federal judge issued preventing the state from suspending any Medicaid payments for services rendered to patients from Planned Parenthood. Republican Gov. Asa Hutchinson ended the state's Medicaid contract with the organization in 2015. The court ruled the unnamed patients suing the state did not have the right to challenge the defunding decision. The panel did not directly address Arkansas' reason for terminating the contract. The decision could potentially lead to a showdown before the U.S. Supreme Court over efforts by Arkansas and several other states to defund Planned Parenthood that have been blocked by other courts." (08/16/17)

http://www.foxnews.com/politics/2017/08/16/federal-court-arkansas-can-block-planned-parenthood-money.html

Is TIF failing the "but-for" test?

Source: Show-Me Institute
by Graham Renz

"Tax-increment financing (TIF) is a development subsidy program abused all over Missouri, and especially in Saint Louis. See exhibit A: the Boulevard development in Richmond Heights, just east of the Galleria. The development has been awarded more than $30 million in TIF over the years for the construction of high-end shopping, office, and luxury residential spaces in one of the most economically successful areas in the region. Just read this developer overview, which claims this part of Richmond Heights 'forms the metropolitan area’s most successful and dynamic commercial and residential district.' The area hardly looks like the 'urban blight' TIF was originally designed to remedy. But there's a recent development, beyond the (ahem) questionable use of subsidies in this area, worth touching on. The most recent phase of the development was originally estimated to cost just shy of $80 million. Back then, developers claimed the project was financially infeasible without TIF and other subsidies. But now the project's costs are up $20 million and it's still moving forward. But how can this be? How can a project that was infeasible at $80 million be moving ahead when it is now $100 million?" (08/01/17)

http://showmeinstitute.org/blog/subsidies/tif-failing-%E2%80%9C-%E2%80%9D-test

The ultimate trifecta of crony capitalism

Source: The American Conservatism
by Alison Acosta Winters

"A free market is by definition a business environment in which companies produce products and services valued by consumers at a cost they are willing to pay, free from special advantages created by government. In such a market, not only will a business fail when it doesn’t create value for consumers, it will be allowed to fail. But well-meaning politicians often can’t resist interventions into the free market through bailouts, subsidies, government loan forgiveness, or other lifelines. And of course companies have every incentive to go after such special treatment, both in terms of lobbying for them and flocking to them once they are created. Thus is corporate welfare found at every level of government in America and in nearly every realm of government policy." (07/27/17)

http://www.theamericanconservative.com/articles/the-ultimate-trifecta-of-crony-capitalism/

Why Planned Parenthood should be defunded

Source: Future of Freedom Foundation
by Laurence M Vance

"Congressional Republicans want to defund Planned Parenthood because it performs abortions. That, of course, means that the organization has been previously funded. And funded it has been — for years, by Republicans, most recently in the omnibus spending bill (H.R.244) to fund the government for the rest of the fiscal year that was signed into law by Trump on May 5. If Republicans, the vast majority of whom would say they are against abortion, are so opposed to Planned Parenthood because it performs abortions, then why did they fund the organization with millions of taxpayer dollars during the Bush years when they had a majority in both Houses of Congress for more than four years?" (07/21/17)

https://www.fff.org/explore-freedom/article/planned-parenthood-defunded/

Stadium subsidies: Not just for the big leagues anymore

Source: Show-Me Institute
by Patrick Tuohey

"Show-Me Institute analysts have opposed spending taxpayer money on sports stadiums in Kansas City, Saint Louis, or anywhere. These subsidies are usually targeted for major league teams that are privately owned and wildly profitable. But in a cautionary tale for Missouri, across the border in cash-strapped Kansas, the Unified Government of Wyandotte County and Kansas City, Kansas (UG) is spending taxpayer dollars to prop up a failing semi-professional baseball team, the T-Bones, in a struggling independent league." (07/05/17)

http://showmeinstitute.org/blog/subsidies/stadium-subsidies-not-just-big-leagues-anymore

US Senate unveils $700 billion corporate welfare plan for ship and plane builders

Source: Military Times

"Senate lawmakers introduced a $700 billion defense authorization bill on Wednesday that sets the stage for another financial showdown with House budget planners and White House officials over the right target for national defense planning. The Senate draft calls for more base defense spending than either of the other plans, fewer troops and a smaller military pay raise than the House proposal, but 54 more aircraft and five more naval ships than the president had planned." (06/28/17)

http://www.militarytimes.com/articles/sasc-ndaa-fy18-more-spending-unveiled

Go Nats?

Source: Common Sense
by Paul Jacob

"Just a few miles away from where I live sits the stadium of the Potomac Nationals. I’m a fan. I’d hate to see the team we call the P-Nats leave. But … Hasta la vista. The owner of this minor league affiliate of Major League Baseball’s Washington Nationals is demanding a new stadium. He threatens to move out of Prince William County, Virginia, if he does not get it. The Prince William County board of supervisors has already expressed interest in floating bonds to raise the $35 million the fancy new stadium would require — with the privately owned team paying the money back, with interest, over the next 30 years. Compared to other crony-ish deals around the country, not such a terrible taxpayer swindle. Still, zillions of wrongs don’t make this right." (06/20/17)

http://thisiscommonsense.com/2017/06/20/go-nats/

Why nuclear power subsidies must end

Source: Independent Institute
by William F Shughart II

"Should utility bills and taxes be used to subsidize money-losing nuclear power plants so they can compete with renewable energy and low-cost natural gas? New York and Illinois, bowing to pressure from a powerful nuclear utility, believe the answer is yes. Several other states, including Connecticut, New Jersey, Ohio and Pennsylvania, may follow suit, arguing that the subsidies will save nuclear power-plant jobs and help electric utilities meet environmental mandates to reduce carbon emissions. That’s just one side of the story. The other side is this: The bailouts (subsidies by another name) reward poor management and bad judgment and would cost homeowners and businesses billions." (05/24/17)

http://www.independent.org/newsroom/article.asp?id=9082

Why subsidize it once when you can subsidize it twice?

Source: Show-Me Institute
by Graham Renz

"There is so much demand for hockey in the Saint Louis region that officials and special interests want to subsidize not just one, but two new ice facilities. That’s right; even though the Hardee’s Iceplex in Chesterfield is going out of business, officials want taxpayers to help pay for two new facilities in its place. … Proponents of both projects claim there is high demand for hockey and ice time in the Saint Louis region. This may or may not be true (though a recent market analysis concluded it is not). One would think the closure of the current ice complex in Chesterfield is telling of the market for hockey and ice time. But, suppose it isn’t, and that subsidy proponents’ claims are true; let’s say there is genuine demand for ice time in the region. If so, why does the public need to subsidize private ice facilities?" (05/03/17)

http://showmeinstitute.org/blog/subsidies/why-subsidize-it-once-when-you-can-subsidize-it-twice