NYT's Kristof: 5 wasteful public welfare programs that should be stopped

[Newsjock]

Source: New York Times

In the debate about poverty, critics argue that government assistance saps initiative and is unaffordable. After exploring the issue, I must concede that the critics have a point. Here are five public welfare programs that are wasteful and turning us into a nation of “takers.”

First, welfare subsidies for private planes. The United States offers three kinds of subsidies to tycoons with private jets: accelerated tax write-offs, avoidance of personal taxes on the benefit by claiming that private aircraft are for security, and use of air traffic control paid for by chumps flying commercial.

... Second, welfare subsidies for yachts. The mortgage-interest deduction was meant to encourage a home-owning middle class. But it has been extended to provide subsidies for beach homes and even yachts.

... Third, welfare subsidies for hedge funds and private equity. The single most outrageous tax loophole in America is for “carried interest,” allowing people with the highest earnings to pay paltry taxes. They can magically reclassify their earned income as capital gains, because that carries a lower tax rate (a maximum of 23.8 percent this year, compared with a maximum of 39.6 percent for earned income).

... Fourth, welfare subsidies for America’s biggest banks. The too-big-to-fail banks in the United States borrow money unusually cheaply because of an implicit government promise to rescue them. Bloomberg View calculated last year that this amounts to a taxpayer subsidy of $83 billion to our 10 biggest banks annually.

... Fifth, large welfare subsidies for American corporations from cities, counties and states. A bit more than a year ago, Louise Story of The New York Times tallied more than $80 billion a year in subsidies to companies, mostly as incentives to operate locally.

Read more: http://www.nytimes.com/2014/03/27/opinion/kristof-a-nation-of-takers.html

[2pooped2pop]

1. sorry I can only rec once

I clicked on the post expecting to get mad and rant. lol Nice surprise

[calimary]

50. Me, too!

Corporate welfare is the worst of all.

[NYC_SKP]

2. K/R. (nt)

[Cha]

3. KICK!

[steve2470]

4. good points !! nt

[MindMover]

5. kr....nt

[SoapBox]

6. Gee...I've known about all of these...

But...Pukes and DINOs alike, won't even talk about them.

The rich get richer!

[LuckyLib]

7. These need to be named each and every time a Republican or DINO trots out that old phrase

public welfare programs together with the word "reform". I want to see some real reform where breaks for the true "takers" are.

[Scuba]

21. Yeah, just wait until the Democrats hear about this! And the liberal media! Whoooooooo!!

[Iliyah]

8. K & R

But the well to do want to take away subsides for people who need help in healthcare coverage.

[mindwalker_i]

9. Damn, that was REALLY unexpected

I dunno what to say...

[blkmusclmachine]

10. DC is a racket.

[allinthegame]

11. be aware

the biggest backer of carried interest subsidies is Senator Schumer whose last name ends in (D). It's all well and good to blame the R's but attention must be paid to those in our own houses.

[Aerows]

43. Yep

Welcome to DU

[stage left]

12. K&R

[ErikJ]

13. more than $12 billion annually in tax subsidies for corporate meals and entertainment.

From article;
"We’re cutting one kind of subsidized food — food stamps — at a time when Gallup finds that almost one-fifth of American families struggled in 2013 to afford food. Meanwhile, we ignore more than $12 billion annually in tax subsidies for corporate meals and entertainment.
Sure, food stamps are occasionally misused, but anyone familiar with business knows that the abuse of food subsidies is far greater in the corporate suite. Every time an executive wines and dines a hot date on the corporate dime, the average taxpayer helps foot the bill.

So let’s get real. To stem abuses, the first target shouldn’t be those avaricious infants in nutrition programs but tycoons in their subsidized Gulfstreams."

[LakeVermilion]

49. And they "have" the money to pay for their own food.

I've always been amazed at golf tournaments. The 99%ers buy hamburgers @ $10.00 each, while the corporate types watch the event from their private boxes next to the greens with catered gourmet food. Tell me why the wealthy get freebies, while the workers have to spend their cash at this kind of event?

[world wide wally]

14. How about the oil company subsidies to the tune of about $4 billion a year?

[sakabatou]

15. +1

[TexasTowelie]

16. I'll be posting this on Facebook and a few other places.

Thanks newsjock.

[2banon]

52. Great idea! Post to FB and make this go viral!

[cui bono]

17. k n r

[CFLDem]

18. K&R

[The Magistrate]

19. They certainly Should, Sir

[fasttense]

40. Great photo

Wish I could rec a reply to a post.

[Enthusiast]

20. But but, this would affect the job creators!

What if the job creators would pull up roots and leave the country? What would we do then? Woe is me, the poor abused corporations.

[IronLionZion]

23. Job creators get all that assistance, so where are the jobs?

Shall we give them more money and see?

[Enthusiast]

24. Yes. If we would just cut their taxes again maybe this time they wouldn't outsource

our jobs.

They claimed if we cut capital gains taxes it would result in an explosion of domestic jobs. They lied.

How long are we going to allow them to dictate tax policy?

[IronLionZion]

25. As long as we keep doing the same things, we can expect a different outcome. nt

[MrScorpio]

22. Sounds like the best list ever nt

[DebJ]

26. Kristof - I'm in love with that guy.

[Ratty]

37. I saw "Kristol" in the post headline

Kept reading and re-reading the list wondering what I was missing. Finally noticed it was an "f" not an "l". Whew. My world is no longer upside down.

[DebJ]

38. Yin and yang. n/t

[bullwinkle428]

27. "TIF districts" (tax-incremented financing) are a GREAT example of #5 :

communities here in Iowa have used them for years and years to "bribe" Wal-Mart and other mega-stores to locate their businesses there, like they wouldn't have anyway.

Huge K&R.

[JimDandy]

28. TIFs from cities to corporations are damaging

our infrastructure and public schools.

[KansDem]

29. Agreed!

If the wealthy want more money to buy another private plane or yacht, they'll just have to get a second job! At least that's the way it's done here in the "heartland."

But no more welfare...

[mountain grammy]

30. K & R a million times!

trying to get this on a bumper sticker!

[niyad]

31. k and r + a gazllion.

[Jakes Progress]

32. Yeah. That's gonna happen.

I don't even see a single congressman suggesting any of these.

They've not only been bought. They want more. Democracy has nothing to do with what goes on in US government.

[SHRED]

33. k&r

[BlueNAlabama]

34. We Deserve it

I cannot imagine anyone in either house of Congress or, for that matter, the White House having the nerve to suggest touching these subsidies. What do we expect when bribery (a.k.a. Lobbying, limitless corporate/PAC campaign contributions, etc...) is now the accepted practice.

Until we take the money out of politics, we have the "Government" we deserve.

[Glassunion]

35. The "yacht" subsidy is actually a "second home" deduction.

[rwsanders]

46. And some of us not in the 1% are using it.

We bought an american made boat, keep it in a marina in a rural area that hires local kids during the summers, and we support craftsmen who make parts and accessories. We even went green and insisted on an electric motor from a small start up that sadly went under.
I think those who are commenting negatively about this deduction don't realize that smaller boats qualify as long as they have area to sleep, cook and a bathroom. It isn't just megayachts.
Taking away this deduction would hurt a lot of small businesses.

[BlancheSplanchnik]

36. would love to stick this in every Ayn Rand fan's face. n/t

[drynberg]

39. I just copied and pasted this article into my FB, I'm just sayin'

[dilby]

41. But if welfare for private planes and yachts ended...

How would the wealthy ever get to Washington to ask their political friends for welfare for their hedge funds, banks and corporations? Sucks that we live in country where he with the most money has the most political influence.

[Gin]

42. Kick

[Blue Owl]

44. Huge K&R

[hootinholler]

45. On air traffic control

"air traffic control paid for by chumps flying commercial."

To be fair the entire NAS is designed around those chumps flying commercial, special attention is given to getting them from point A to B as efficiently as possible. General Aviation pays some via fuel taxes, but has no need for the hub-airway system.

[allan01]

47. Pic Of The Moment: It's Time To End Wasteful Welfare!

end of the WEALThcare system as we know it .

[RoccoR5955]

48. I'm all for it! n/t

[Blue_In_AK]

51. Hey, look, something we can all agree upon!

A miracle.

[senseandsensibility]

53. Yes!

Love it!!!!

[alfredo]

54. knr

[Omaha Steve]

55. K & R!