Americans for Prosperity Urges House to Reject Corporate Welfare

Jul 25, 2014 by AFP

Asks Lawmakers to Strip out “Jobs Catalyst Fund” when Voting on Sales Tax Measure

RALEIGH, NC – Americans for Prosperity released the following statement in response to yesterday’s passage of House Bill 1224 in the State Senate. While the bill primarily deals with changes to local sales taxes, a provision hidden within the bill creates a new corporate welfare slush fund, known as the “Jobs Catalyst Fund.”

“We are disappointed in the passage of the bill as it is currently written,” said Donald Bryson, North Carolina Deputy State Director for Americans for Prosperity. “While much of the bill is acceptable, the creation of the corporate handout program called the ‘Jobs Catalyst Fund’ is troubling. This program has received very little media attention, but will allow the Department of Commerce to give handouts to corporations up to $50 million.”

On page 10 of the House Bill 1224, the fund allocates up to $50 million to corporations for favored forms of economic activity. Americans for Prosperity opposes corporate welfare in any form, maintaining that government should not pick economic winners and losers. The best formula for economic growth and broad-based prosperity is the free market, according to the group’s spokesman.

Bryson continued, “Taxpayers should not be expected to pad the pockets of well-connected business owners. Competitive, innovative business owners will create the most jobs, not Raleigh’s bureaucrats. It’s also troubling that there is not a publicly available Fiscal Note on this provision.”