There’s little evidence that corporate welfare generates widespread economic growth or jobs.
corporate welfare
Other automakers will likely ask for similar handouts from Ontario and the federal government.
Quebec spent roughly the same amount of money on corporate welfare as it collected in business income tax revenue.
The seven organizations combined will spend more than $2 billion in 2023-24 while employing nearly 2,000 civil servants.
In 2019, the Alberta government spent $2 billion on corporate welfare.
The province spent $171 million on business subsidies in 2019.
Governments do not possess superior knowledge of what people want to buy or sell.
In this year’s federal budget, the government earmarked $80 billion in corporate handouts to select industries.
The Volkswagen handout prompted automaker Stellantis to halt construction of an electric vehicle battery factory.
Policymakers should make business and personal income taxes more competitive and reduce the costs of regulation.