Shahid Buttar | Posted April 22, 2008
Government handouts to corporations might seem untenable at a time when more and more Americans suffer every day from the impacts of a mounting economic crisis. Yet efforts to bolster the economy have largely taken the form of corporate welfare -- much like an appalling effort, in the closing days of the Bush administration, to subsidize corporate violations of the rule of law and individual liberties.
After the Federal Reserve's $30 billion bailout for investment bank Bear Stearns last month came the Senate's recent decision to set aside $25 billion in tax breaks for corporate homebuilders, and then last week's revelation of "a historic collapse in audits" of major corporations by the IRS. All three stories prompted outrage from observers noting the implications for American workers.
But even these insults pale next to another round of corporate welfare currently considered by Congress for the telecom industry -- a handout that, despite a smaller price tag, even more thoroughly degrades the public interest by both undermining national security and offending our nation's fundamental interests in transparency and the rule of law.