Monday, January 17, 2011

America's Largest Government Subsidies

Outside of fossil fuel energy. The United States of America pays near $20 Billion per year to farmers in Direct Subsidies as "farm income stabilization" (Title V) using U.S. farm bills. A Canadian Government report concludes that for every dollar U.S. farmers earn, 62 cents comes from some form of United States Government, with total aid in 2009 from all levels of government adding up to $180.8 billion.

According to Wikipedia "In the 1930s, about 25% of the country's population resided on the nation's 6,000,000 small farms. By 1997, 157,000 large farms accounted for 72% of farm sales, with only 2% of the U.S. population residing on farms. In 2006, the top 3 states receiving subsidies were Texas (10.4%), Iowa (9.0%), and Illinois (7.6%). The Total USDA Subsidies from farms in Iowa totaled $1,212,000,000 in 2006. From 2003 to 2005 the top 1% of beneficiaries received 17% of subsidy payments. In Texas, 72% of farms do not receive government subsidies. Of the close to $1.4 Billion in subsidy payments to farms in Texas, roughly 18% of the farms receive a portion of the payments.





Mind you a full 20% of the total subsidy or $20 Billion are "Direct Pay Subsidies" which are handed out with no regard to recipients economic need. Farms big or small financially healthy or hurting is not taken into account; the money is paid. The states where most Direct Pay Subsidies" go: Iowa ($501 million), Illinois ($454 million), and Texas ($397 million).

I make no judgment regarding government promotion in this matter.

Simply put I point out an intervention by government regulation as the hypocritical Grand Ole Party (GOP) takes control of the 112th House of Representatives.

I support Small and Effective Government - Very far from what today's GOP professes to represent!

Farm subsidies have the direct effect of transferring income from the general tax payers to farm owners. These subsidies act just the same as every other government regulation does.

The United States Constitution: "We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."

"Section. 8."

"The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;..." "To make Rules for the Government and Regulation of the land and naval Forces;"

Here you can find information on the Fossil Fuel Industry Subsidies:

Energy Tax Subsidies

Oil Industry Protection Cost

Program Level Corporate Tax Subsidies


1 comment:

  1. How many GOP supporters who talk about socialism receive these benefits? Look up states which receive the greatest benefits from our countries agriculture policies:

    http://tinyurl.com/4dsrnot
    .

    ReplyDelete

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Elections matter-openly cynical of government business as usual-Supreme Court Justices 5-4 open warfare on my Individual Liberty-Teach as Knowledge is Power!