Thursday, August 5

Ending corporate welfare in the tax code

Timothy P. Carney: “Big government benefits those who can afford the best lobbyist. Republicans can reach out to everyone else.” Earlier in the article he writes: “Expiring tax breaks provide another opportunity for Republicans to battle the special interests while striking a blow for free markets.”

He quotes Louisiana Governor Bobby Jindal: “We’ve got to make sure that we are not the party of big business.” Republicans, Jindal said, need to be sure they are not too cozy with “big banks, big Wall Street bailouts, big corporate loopholes, big anything.”

(I would argue with Jindal about big “anything.” Bigness earned legitimately is not bad. Competitive markets guide business firms in figuring out how large or small they should be.)

Carney, author of The Big Ripoff: How Big Business and Big Government Steal Your Money, lists a number of anti-free market measures Congress could tackle in the lame duck session. He labels these as “real populist tax reform.”

Among the measures he mentions is the tax credit for the production of wind power, which is prominently supported by Kansas Governor Sam Brownback and U.S. Senator from Kansas Jerry Moran.

More at Carney: GOP has chance to wage war on corporate welfare.