BY LEIGHTON LOO – Amidst budget battles the cries against corporate subsidies have intensified.  Basically they are usually framed as rich corporations ripping off the American taxpayer.  But instead of letting ourselves get caught up in the very easy rage and envy, it is usually good to pause and at least try to understand basic economics.

The reality is that corporate subsidies can be good for the average Joe. The more money a corporation makes the more it can hire and/or retain the American worker.  Don’t forget too – corporations are probably very much a part of YOUR 401K PLAN, IRA AND PENSION PLAN. Where do you think your retirement money is being invested in? In other words, subsidized corporations that are part of your retirement plans help you in your retirement.

Of course, there are some corporate tax breaks that should be repealed but this should be done on an objective basis – not with an angry desire to punish. In fact, we should be encouraging oil companies to drill for new oil in America and offshore.

Leighton Loo is a resident of Mililani, Hawaii

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