|
Comment on this article |
Email this Article
|
|
News :: Civil & Human Rights : Globalization : Political-Economy |
|
Wal-Mart or Welfare-Mart? |
Current rating: 0 |
by AGRIBUSINESS EXAMINER
(No verified email address) |
26 May 2004
|
|
Not only does Wal-Mart depend on government funding to take up the slack for the housing, education, and healthcare of its underpaid workers, but it also is the largest recipient of corporate welfare in the world. |
Wal-Mart Stores Inc., the world's largest retailer, has benefited from more than $1 billion in economic development subsidies from state and local governments across the United States, according to a new study (http://www.goodjobsfirst.org/pdf/wmtstudy.pdf) by Good Jobs First. "Wal-Mart presents itself as an entrepreneurial success story, yet it has made extensive use of tax breaks, free land, cash grants and other forms of public assistance," said Philip Mattera, research director of Good Jobs First and principal author of the study.
The study found more than 240 cases in which the construction of new Wal-Mart facilities was assisted by public resources. In addition to 160 retail outlets, the study found subsidies at 84 of Wal-Mart's distribution centers, representing more than 90 percent of the network of huge warehouses the company has built to facilitate its rapid expansion.
Wal-Mart subsidy deals were found in 35 states, with the largest number in California, Illinois, Missouri, Texas and Mississippi. In total dollar terms, Louisiana, Florida and New York also ranked high. Although comparative data are not available, the study says it is likely that Wal-Mart, given the extent of its operations, receives state and local subsidies from more jurisdictions than any other corporation in the United States.
The types of subsidies given to Wal-Mart projects included the following:
- Free or reduced-price land;
- Infrastructure assistance, including access roads and water/sewer lines;
- Tax increment financing, a diversion of property (and/or sales) tax generated by a new development;
- Property tax abatements;
- State corporate income tax credits;
- Sales tax rebates or exemptions;
- Enterprise zone status, which typically provides for a menu of subsidies such as property tax abatements, state tax credits, sales tax exemptions and reduced utility rates;
-Job training and worker recruitment funds;
- Tax-exempt bond financing; and
- General grants, including outright cash payments to the company.
In addition to documenting subsidies actually awarded to Wal-Mart projects, the study describes those situations in which local citizen groups successfully opposed plans for public assistance to the company. "The fact that Wal-Mart often proceeded with such projects without subsidies suggests that the company did not seek the assistance out of financial need," Mattera said. |
See also:
http://www.electricarrow.com/CARP/
http://www.goodjobsfirst.org
|
Copyright by the author. All rights reserved. |
