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Tea Party Challenges Obama, K Street on Corporate Welfare

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Photo Credit: Kevin Dietsch

Congressional Republicans and the Obama White House are headed for another clash over corporate welfare, and once again President Obama is on the side of big business while Senate conservatives are on the side of free markets.

The battleground is the Export-Import Bank, a federal agency that subsidizes U.S. exports — mostly Boeing jets — by issuing taxpayer-backed financing to foreign buyers. In 2008, candidate Obama aptly described Ex-Im as “little more than a fund for corporate welfare.”

Obama has spent four years pumping steroids into Ex-Im, setting a record $35.7 billion in taxpayer-backed financing last year. Ex-Im’s biggest subsidy program is its loan guarantees, and the agency doled out $14.5 billion of those last year, with $12.2 billion going to subsidize Boeing jets. Piloting Ex-Im as chairman for those four years has been Fred Hochberg. Late last month, Obama announced he is nominating Hochberg for a second term.

As Hochberg used the agency’s annual conference on Thursday to defend and extol his tenure, the conservative Club for Growth — a significant money source for the Tea Party insurgency in the GOP — came out against his appointment. The club announced that it would include Hochberg’s confirmation vote in its annual scorecard. In other words, if a Republican senator wants to avoid a Tea Party primary challenge, he or she would do well to oppose Hochberg.

Hochberg’s nomination would be yet another Tea Party-vs.-K Street battle within the GOP. The U.S. Chamber of Commerce is firmly in Hochberg’s camp. At Ex-Im’s conference (where JPMorgan Chase was named Lender of the Year), Hochberg gave the Chairman’s Award to chamber President Tom Donohue to thank him for his group’s successful effort fighting off a Tea Party-led effort to kill Ex-Im, whose charter was up for renewal last year.

Read more from this story HERE.

CATO: $100 Billion of Corporate Welfare in the Federal Budget

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Rising federal spending and huge deficits are pushing the nation toward a financial and economic crisis. Policymakers should find and eliminate wasteful, damaging, and unneeded programs in the federal budget. One good way to save money would be to cut subsidies to businesses. Corporate welfare in the federal budget costs taxpayers almost $100 billion a year.

Policymakers claim that business subsidies are needed to fix alleged market failures or to help American companies better compete in the global economy. However, corporate welfare often subsidizes failing and mismanaged businesses and induces firms to spend more time on lobbying rather than on making better products. Instead of correcting market failures, federal subsidies misallocate resources and introduce government failures into the marketplace.

While corporate welfare may be popular with policymakers who want to aid home-state businesses, it undermines the broader economy and transfers wealth from average taxpaying households to favored firms. Corporate welfare also creates strong ties between politicians and business leaders, and these ties are often the source of corruption scandals in Washington. Americans are sick and tired of “crony capitalism,” and the way to solve the problem is to eliminate business subsidy programs.

Corporate welfare doesn’t aid economic growth and it is an affront to America’s constitutional principles of limited government and equality under the law. Policymakers should therefore scour the budget for business subsidies to eliminate. Budget experts and policymakers may differ on exactly which programs represent unjustified corporate welfare, but this study provides a menu of about $100 billion in programs to terminate.

Read more from this report HERE.

Another Voice: Take the High Road, End Corporate Welfare Now!

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Obama has maneuvered the narrative of the fiscal cliff talks as being a war between the rich and the middle class. Obama claims to be on the side of the middle class and the GOP, the party of the “rich.”

The mainstream media of course, always on the look out for a simplistic headline to rally around, can carry this message forward to further marginalize the Republican Party.

It’s time for the party to be bold and call Obama’s bluff. Instead of going through the death of a thousand cuts, come out and put something on the table that all Americans can get behind: Call for the end of all corporate welfare. These “entitlements” are costing taxpayers an estimated 100 billion dollars per year. See the Cato Report HERE.

Entitlement programs/the welfare state is the driver behind the huge debt of America… Corporate welfare IS an entitlement.

If the Republicans can be bold enough to put this on the table, they can then demand from Obama, cuts to other entitlement programs. This will deflate the class warfare meme that has worked so well against the Republicans.

After all, why should the American middle class be paying for huge subsidies to corporations that hire thousands of lobbyists who shower politicians of both parties to vote more corporate loopholes?

At the same time all of the billions of dollars in “green subsidies” can be ended, including the subsidies for the rich who buy expensive electric cars. Why should the middle class pay for the rich when they buy their toys? Average income for an electric car buyer is $174,000. Why should a middle class taxpayer put up 7,500 per car to entice a wealthy person to buy an electric car?

Why should the middle class by paying 26.00 per gallon for “green” fuel supplied to the military when they can get that same fuel for 3.50 per gallon?

The giant retailer Wal-Mart has more workers enrolled in many state Medicaid programs—which are supposed to be reserved for poor people—than any other employer. Why should the middle class be subsidizing Wal-Mart?

Instantly the Republicans will gain credibility with Americans. They can stand toe to toe with Obama, look him straight in the eye and say: “We are willing to put Americas future first are you?”

Nothing short of boldness will work now, otherwise it will be another kick the can down the road and Americans will be more disillusioned than ever with their leaders in Washington.

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Ed Farnan is the conservative columnist at IrishCentral, where he has been writing on the need for energy independence, strong self defense, secure borders, 2nd amendment, smaller government and many other issues. His articles appear in many publications throughout the USA and world. He has been a guest on Fox News and a regular guest on radio stations in the US and Europe.

GOP Must Fight Corporate Welfare

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No one accuses establishment Republicans of being terribly brave or bright, but this insanity has got to stop: Democrats repeatedly frighten Republicans into accepting their statist agenda and then blame them for behaving like, well, Democrats. Republicans just keep falling for it.

Consider the president’s most vulnerable issue: Obamacare. During the election, Democrats didn’t bother to defend their horrible law so much as to delight in the fact that Mitt Romney authored it. When Republicans correctly said we couldn’t afford it, Democrats just as correctly responded that we couldn’t afford President George W. Bush’s massive Medicare expansion. Lost was the far more consequential fact that government-run health care is lousy and, worse still, incompatible with freedom.

It’s time for Republicans to stop playing checkers and start playing chess.

First, we must face the reality that conservatives are in the minority. Forget the perennial Gallup polls showing that self-identified conservatives outnumber liberals 2-1. This is in name only. It’s a reflection that we have successfully promoted a brand but have failed to explain its benefits. Meanwhile, the Democrats have established an actual majority voting alliance of beneficiaries of government largesse.

The implications are staggering. Our Founding Fathers Thomas Jefferson and Alexander Hamilton rarely agreed on anything except this: Once the voters turn the public treasury into a public trough, the republic is lost. From the ashes of our failed American experiment, a dictatorship likely will arise.

Read more from this article HERE.

Bernie Sanders: Multinational Corporations Raping the US Treasury, Outsourcing Hundreds of Thousands of Jobs

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After a group of CEO’s wrote an opinion piece today in the Wall Street Journal about the country’s deficit and the need to rein in social security, medicare, and other programs, Leftist Senator Bernie Sanders went on the offensive:

There really is no shame. The Wall Street leaders whose recklessness and illegal behavior caused this terrible recession are now lecturing the American people on the need for courage to deal with the nation’s finances and deficit crisis. Before telling us why we should cut Social Security, Medicare and other vitally important programs, these CEOs might want to take a hard look at their responsibility for causing the deficit and this terrible recession.

Sander’s Senate website went on to note that

Many of the CEOs who signed the deficit-reduction letter run corporations that, in total, evaded at least $34.5 billion in taxes by setting up more than 600 subsidiaries in the Cayman Islands and other offshore tax havens since 2008. As a result, at least a dozen of the companies avoided paying any federal income taxes in recent years, and even received more than $6.4 billion in tax refunds from the IRS since 2008.

Several of the companies received a total taxpayer bailout of more than $2.5 trillion from the Federal Reserve and the Treasury Department.

Many of the companies also have outsourced hundreds of thousands of American jobs to China and other low wage countries, forcing their workers to rely on unemployment insurance and other federal benefits.

“In other words,” Sanders said, “these are some of the same people who have significantly caused the deficit to explode over the last four years.”

Sanders then documented the CEO’s and their companies’ outsourcing, tax credits, and other benefits in a document that can be seen here.

Although Sanders and Restoring Liberty have little in common, he has identified a real problem: we have increasingly powerful multinational corporations in the United States that have absolutely no loyalty to our Constitution or nation. Many are not only actively involved in subverting national sovereignty but are also milking the treasury through corrupt relationships with political insiders in DC. Crony capitalism is not free market economics.