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‘Corporate Welfare’ Misuses Funds

September 16, 2018

Editor: A recent article in The Citizens’ Voice highlights that WNS in Hanover Twp. will close its doors for good at the end of September, putting 107 men and women out of work (Aug. 29). This news comes just two years after Gov. Wolf announced the addition of 300 jobs and over $700,000 in government grants for the company — exemplifying how this taxpayer-funded “corporate welfare” misuses public money. Corporate welfare awards public subsidies to businesses, essentially picking winners (often well-connected corporations) and losers with public resources. This is unfair to taxpayers, workers, and smaller business owners. As WNS demonstrates, corporate welfare creates instability for workers and fails to protect jobs and boost the local economy as intended. This is hardly an unexpected outcome. Just look to Aker shipyard in Philadelphia, where, since the 1990s, politicians have been pumping millions in taxpayer dollars, despite the company never creating the number of jobs they promised. Pennsylvania leads the nation in corporate welfare — over $6 billion in the last 10 years —yet ranks 34th in job growth and has the sixth highest unemployment rate in the nation. It’s clearly a failed policy. Rather than bribe companies to stay in the state, or spend millions of taxpayers dollars on companies that ultimately fail, lawmakers should create the conditions for businesses to flourish in Pennsylvania. For instance, cutting corporate welfare and using those savings to reduce the corporate net income tax will allow small businesses to arise and be competitive. This will stop political special interests from abusing taxpayer resources and encourage businesses of all sizes to grow in Pennsylvania — benefitting workers across the state. Christopher Smith KING OF PRUSSIA

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