Imagine you are running a small business, which are responsible for 55% of jobs and 54% of all sales in the United States. You want to expand to a new location to compete with the mega conglomerate corporation down the street but you aren’t sure you can extend yourself that much. Now imagine that mega conglomerate corporation expands to five more locations around you, knowing full well they can’t afford that kind of overhead but that the federal government will bail them out if they get into trouble. That’s called corporate welfare, and it leaves an uneven playing field for small businesses to compete against larger corporations.
Corporate welfare may have averted a total meltdown of the global economy in 2008 during the midst of the housing crisis and the auto industry crisis, so they system is not completely without merit. But awarding tax breaks to companies that turn around and reincorporate in other countries to avoid paying into the tax system from which they benefit is dubious at best. Learn more about corporate welfare from this infographic.