A new Cato Institute policy analysis is released today titled “Corporate Welfare in the Federal Budget.”

In this study, Kilts Family Chair in Fiscal Studies Chris Edwards tallies corporate welfare in the federal budget and finds that the government spends $181 billion a year on aid to businesses. He then discusses 12 reasons to cut corporate welfare.

The federal government runs a wide array of programs that subsidize businesses and industries. The federal budget also includes billions of dollars of special-interest tax breaks for businesses. These subsidies should be repealed to boost economic growth and reduce federal budget deficits, Edwards says.

Corporate welfare also erodes trust in the government and the business sector. It is seen as unfair, and it creates corrupting ties between politicians and business leaders. The government should referee the economy in a neutral manner, not intervene to create winners and losers.

Rising federal deficits should make spending cuts a high priority for the new president and Congress. Policymakers should start by cutting corporate welfare, which undermines economic growth and runs counter to the American ideal of equality under the law, Edwards concludes.

You can read the full report here. If you would like to speak with Edwards, please contact pr@​cato.​org to set up an interview.