American Greetings
Flags fly outside the corporate headquarters of American Greetings.
WASHINGTON, D.C. - Government subsidies aren't only for the poor, if a new database of federal, state and local grants, loans and tax breaks to well-heeled corporations is an indication.
Some of the nation's, and Ohio's, leading corporate citizens including Eaton Corp., Timken and American Greetings have sought and received millions of dollars in taxpayer subsidies.
The companies get tax credits, loans or loan guarantees, grants and other incentives in exchange for agreeing not to leave town or the state, or agreeing to move to a new town. Some companies get subsidies to help cover the cost of research, leading to new products - which, if they are defense contractors, they then can sell to the government. Some get subsidized, low-interest loans to stay afloat or get ahead when the free market isn't operating the way textbooks said it should.
These are "Uncle Sam's Favorite Corporations," to use the name of a report from a group called Good Jobs First.
But that sounds cynical. There is another way to view this: Companies get government incentives, loans or tax forgiveness to build jobs and plants and create value for communities. A dollar of government investment can yield a bigger return in wages and new tax revenue. And whether at the federal, state or local level, nearly everyone does it, from Abercrombie & Fitch to Lincoln Electric.
Regardless of the view you hold, take a spin through the new Good Jobs First database. The organization has assembled an impressive amount corporate subsidy information. You can sort it a number of ways.
For example, at the national level, the biggest subsidy has gone to Iberdrola, a Spanish energy company that got tax credits and grants by investing in wind-power projects that benefitted from the 2009 federal economic stimulus. Number two is NextEra Energy, the parent of Florida Power & Light.
A look through Ohio recipients shows hundreds of millions of dollars apiece for Ohio operations of Chrysler, General Electric, Convergys, General Motors, Goodyear and American Greetings. It shows $85 million in 2009 and $30 million in 2008 to Eaton, which in 2012 became an Irish-based company but kept its Ohio operations and its federal government contracts.
Fortune 500 companies are heavily represented. Although some liberals and conservatives alike decry what they call "corporate welfare" and "crony capitalism," there is no nationwide movement or political outcry to repeal the heavy subsidies.
What do you think? Take a look at the report, and look through the data in the "Subsidy Tracker 3.0" (look up Ohio in the State Summary Pages). Then sign in below and share your thoughts.