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The Case Against Corporate Subsidies |
[An excerpt from the
book, The Self-Supporting City. Reprinted from a publication
of the Public Revenue Education Council, St. Louis, Missouri]
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This is the story of a simple but vital fact about government
and taxes. It is soundly based on experience and on truths of economic
science. The fact, briefly stated, is:
Government, like on individual or a business, has a natural
source of income and can be self-supporting.
This fact, when understood, will show all thinking people how our
present system handicaps the producers of wealth and services and
destroys their natural incentives. When this fact is applied to our
economic system the same amount of labor and capital will produce much
more wealth-and services and give added leisure. The observable benefits
will be so great that any serious threat to Free Private Enterprise by
proponents of Marxism will be ended forever; and, by example, it will
help roll back Marxism in other countries where it prevails.
The Problem
Men have seen the possibility of a SELF-SUPPORTING government. The
following conversation between William H. Seward, Secretary of State
under Lincoln, and Andrew H. Green, a distinguished citizen of New York,
is taken from the book, "War-time Statesman", by Mr. Seward's
son. All that Mr. Seward and Mr. Green say of New York City and the
citizens of their time applies just as certainly and as fully to our
government and our conditions today.
Taking up a corporation report, Mr. Seward said:
"Mr. Green, here is something which you can
comprehend, but I confess I cannot Here is a great corporation which
has vastly more property and resources in the way of real estate,
streets, franchises, docks and wharves, buildings, rents, licenses,
powers and privileges, than any other corporation can possibly have.
And yet it cannot pay its own expenses. It has to ask the individual
taxpayer to go down into his pockets and take out of his personal
earnings a yearly contribution, in order to keep this gigantic
corporation on its feet Why should not the City of New York pay its
own expenses? Why should the individual taxpayer be called upon at
all?"
To this Mr. Green replied:
"Mr. Seward, you are right. The problem is one that I
have worked on over many years. The City of New York has given away
more than enough to pay its expenses many times over. But the citizens
of New York don't see it, either because they are too careless, too
ignorant, or too unpatriotic, or don't want to." - From: Self-Supporting
City by Gilbert Tucker.
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