Not All Business Subsidies Get Axed In Bush Budget
May 18, 2001
President Bush plans to cut aid to business programs by $1 billion. But critics say that he is ignoring other programs which would be more difficult to toss out.
- The Bush budget reduces from $925 million to $687 million funding for the Export-Import Bank which it spends to finance purchases of U.S. exports.
- The Overseas Private Investment Corp. -- which provides low-cost risk insurance for companies in emerging markets -- would see its budget sliced from $47 million to $23 million.
- An obscure Commerce Department program that subsidizes technology companies' research would see funding reduced from $132 million to $13 million.
- Energy Department research programs would be slashed by over $300 million.
But here are a few items advocates of limited federal government wish the President would get serious about.
- The ethanol fuel boondoggle which gives corn growers an $800 million tax break.
- The President actually increases from $86 million to $92 million funds going to such promotional groups as the Catfish Institute and the National Watermelon Board.
- Research into clean coal is pared only slightly -- from $2 billion to $1.9 billion.
- Timber subsidies in the amount of $500 million pay loggers to cut down trees on federal property.
Source: Lorraine Woellert and Richard S. Dunham, "Cutting Corporate Welfare: Is Bush Serious?" Business Week, May 21, 2001.
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