The corporate welfare program known as foreign sales corporation (FSCs) was made to encourage businesses to export their products. It has cost U.S. taxpayers more than 10 billion dollars in the 1990s, and 8 billion has gone to the largest corporations (Barlett & Steele, Nov. 16, 1998). To be part of this program, a company sets up a foreign sales corporation. This means they set up an office in one of 32 countries designate

Corporate welfare promotes "an incestuous relationship between business and government" (Moore & Stansel, 1995). The money given in these programs is little more than a political payoff to these large influential businesses. The tax money used to support corporate welfare is returned to Washington pockets in the form of political contributions to secure even more corporate welfare (Moore & Stansel, 1995). Corporate welfare is anti-consumer because it raises costs of products to consumers. Trade restrictions against foreign trade that protect American corporations increases the cost of many products for the consumer. The sugar program is an example of this and is estimated to cost consumers several billion dollars a year. Because sugar is an ingredient in so many food products, the effect is multiplied to the consumer. The U.S. Department of Commerce made this study and yet the government subsidizes the sugar companies (Moore & Stansel, 1995). Corporate welfare given to large companies hurts the consumer in two ways. The consumer has to pay higher taxes to finance these programs. The consumer also loses in reduced services because the companies do not pay the government needed tax dollars. In states like Louisiana, 20% or more of the industrial property taxes goes to education. When these companies get large tax breaks it means less money for schools (Barlett & Steele, Nov. 23, 1998). The states come through with these huge property tax breaks because they are afraid of losing jobs for their residents. A state aims at having a low unemployment rate. If unemployment rates are high then the population can decrease because of people changing locations in order to find employment. A state wants to keep people working within the state for more taxes to be returned by their wages. The higher amount of people working leads to more money for the state. Corporate welfare is millions of dollars given to well established companies making large profits at the expense of the American taxpayer. Corporations, which are the top money making companies in the U.S., should not get help from the government. Welfare is help to the needy and these corporations are not indigent. Corporate welfare programs are an injustice to the American taxpayer and need to be cut drastically to help balance the national deficit.

d by Congress. The company then sends its exports through its offshore foreign sales corporation. Doing this a company can save 15% or more in federal income tax (Barlett & Steele, Nov. 16, 1998).

The U.S. government gave money for a 29 million-dollar insurance policy to protect a new Levi Strauss factory in Turkey. Levi Strauss is the world’s largest garment manufacturer, but still received government assistance. The U.S. Department of Labor was also paying extended unemployment benefits to 6,400 workers in this country who were laid off because of decreased production in Levi factories in the U.S. (Barlett & Steele, Nov. 16, 1998).

Looking at all the mone

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