Defining Corporate Welfare

Corporate welfare is characterized as government actions that provide special benefits to particular companies, often at the expense of taxpayer dollars. This can manifest in various forms, such as tax reductions, cash grants, loan guarantees, or exemptions from regulations. The distinction between corporate welfare and general business tax breaks lies in the selective nature of the benefits, targeting specific companies instead of making them available to all in a sector. For instance, a tax incentive for a specific sports team, as opposed to a broader incentive for any team, is seen as a clear instance of government favoritism.