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Ending Corporate Welfare As We Know It

WASHINGTON (AllPolitics, June 5) -- Pork's first cousin (or perhaps twin brother) is what critics refer to as "corporate welfare" or "corporate pork." A diverse coalition of lawmakers is battling what it says amounts $85-110 billion a year in unnecessary subsidies to business.

The group, called the "Stop Corporate Welfare" (SCW) Coalition, is spearheaded by Sen. John McCain (R-Ariz.) in the Senate and Budget Committee Chairman John Kasich in the House. They have been joined by Democratic Sens. Edward Kennedy and John Kerry of Massachusetts.

And how do they define corporate welfare? When "businesses are benefiting more than the public," says Kasich.

The group offered legislation last year eliminating some $60 billion in corporate subsidies, but it failed in the Senate. This year, SCW has a new bill targeting $11.4 billion over five years in 12 spending programs.

"As a matter of simple fairness, we have an obligation to ensure that corporate interests share the burden of deficit reduction," declared Sen. John McCain at a press conference.

Comparing the effort to last summer's bill to curtail welfare payments to America's poor, Kasich said, "It is absolutely the American way to begin to have welfare reform for those who are very powerful and, in some cases, very rich."

The 'dirty dozen' of corporate welfare

Labeled the "dirty dozen" by SCW members, government programs that benefit corporate interests and are targeted by the legislation include:

The Rural Utilities Service (RUS) -- Providing subsidized loans to certain suppliers of electricity, the RUS is the offshoot of the Rural Electrification Administration, established during the Depression to serve rural areas. SCW says RUS should be terminated, saving $190 million over five years.

Market Access Program (MAP) -- MAP helps pay advertising costs for exporters of fruits, nuts, meat, vegetables, eggs, poultry, wine and seafood. SCW says the program merely replaces private funds and should be terminated, saving $347 million over five years.

Animas La Plata -- The program provides subsidized water to Colorado farmers to grow crops like alfalfa. The Interior Department estimates costs are three times the benefits. Ending the program would save $432 million.

Appalachian Regional Commission (ARC) Road Program -- Created in 1965 to help the economies of 13 Appalachian states, the program, according to SCW, has benefited construction companies but done little for long-term economic development there. SCW would end the roads portion of ARC, saving $500 million over five years.

Fossil Energy Research and Development -- The program is designed to assist companies with fossil energy research and development, which SCW members say is more appropriately left to the private sector. Terminating would save $1.37 billion over five years.

Timber Roads in the National Forests -- SCW says the Forest Service is subsidizing timber companies and recreational users in the national forests. Ending those subsidies would save some $100 million over five years, they estimate.

Clean Coal Technology Program (CCTP) -- Benefiting electric utilities and industrial users of coal, CCTP was created in 1984 to help industry develop environmentally sound commercial uses for coal, but it is no longer needed, according to SCW. SCW would terminate future funding and rescind earlier funding, saving $500 million over five years.