Saturday, January 11, 2014

Why are our tax dollars subsidizing highly profitable corporations?

Roughly half of all fast food workers use some form of public assistance, Medicaid, food stamps or housing assistance. 68 percent of fast-food workers are single or married adults who aren’t in school, 26 percent are raising children. Big companies that pay minimum or near minimum wage to their mostly adult employees are responsible for a high percentage of people on government assistance.

If you’re one of the 49 percent of Americans who pay federal income taxes then you are being taken advantage of by Mike Duke, CEO of Walmart, and other top executives because you’re subsidizing their profits to the tune of $7 billion every year. That’s what it takes to pay for the public assistance relied upon by their employees. McDonald's subsidy alone is worth $1.2 billion a year, which equates to more than a fifth of its 2012 profits.

If you think you pay too much in federal taxes ask Congressman Lamar Smith why he allows your tax dollars to subsidize the profits of big corporations like McDonald’s, Walmart and Papa John’s. If you think your state taxes are too high ask Senator Donna Campbell why she isn’t working to make highly profitable companies pay their employees enough that they don’t qualify for public assistance.

Wouldn’t it make more sense to stop subsidizing their profitability by raising the minimum wage so that anyone working a full time job didn’t need our tax dollars to pay for health care, food and rent?