Aren't corporate bailouts essentially the same thing as corporate tax cuts?

Aren't corporate bailouts the same thing as corporate tax cuts, only the taxpayers give the money to the corporations SOONER in the case of the former?

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  • 1 decade ago
    Favorite Answer

    No.

    Corporate tax cuts allow a business to plan, setting budgets and projecting cash flow. Corporate tax cuts will allow a business to increase activity in a measured and effective manner. In addition, corporate tax cuts give incentives for a business to make investments and take risks in order to increase profit.

    Corporate bailouts are handouts given to a business after it has already failed. Corporate bailouts reward failure, unlike tax cuts that reward success.

    Corporate bailouts are means for politician to pick winners and losers. "We like you, we'll bail you out. We don't like that business, we won't bail them out."

    Specifically looking at GM, "You'll support our political party. We'll spend billions bailing you out."

    And the news yesterday, GM is taking our taxpayer dollars and giving huge campaign contributions to the Democrat party.

    No, corporate tax cuts that affect every business are not the same as corporate bailouts that only support politicians' favorites.

  • 1 decade ago

    No, they are not the same thing at all.

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