If corporate welfare were to be eliminated, a paper published by the Cato Institute contends, the federal government could give taxpayers tax cuts that would make earlier rebates seem small.

        It finds at least $87 billion in federal subsidies — also called handouts — to private-sector companies, including General Motors Corp., Dow Chemical Co. and General Electric Inc.

        Cato is a Libertarian think tank that tends to equate government growth with restraints on individual liberty and free, competitive markets.

        Government has its proper role and the private sector its, and Cato says the joining of the two produces problems.

        “How much did some federal departments give away?” it asks. It answers: Agriculture, $35.8 billion; Transportation, $10.3 billion; Housing and Urban Development, $7.5 billion; Energy, $5 billion.

        There are important roles for government, such as the security of the nation. And in that role, recent events have compelled government to grow.
       

Bailing the failing

               The nation's airlines are getting a $15 billion bailout, the rationale in part being that they are essential to the public welfare. And warding off recession involves $40 billion of emergency spending.

        It could be just the beginning. Other industries, important to local and regional interests or to national security, may seek assistance.

        Bioterrorism dictates changes, and a federally appointed advisory commission is already believed ready to advise the creation of a government-owned facility to ensure a stockpile of vaccines.

        A weak economy also demands or, it is argued, justifies government spending to stimulate activity, such as measures to improve the nation's transportation system. Or to extend welfare benefits for laid-off workers.

        In such ways, Cato suggests, government spreads its power. But you can't blame government entirely. Private sector businesses co-operate in government spending, their lobbyists even initiating the process.
       

Drawing the line

               President Bush's first proposed budget sought to cut about $12 billion in corporate welfare, but included increases for other programs, including aid to oil and aerospace companies.

        Isn't such assistance eventually in the interest of national security? Ah, that's the problem. Of course a strong private sector is in the nation's interest, but how do you draw the line?

        Because of current events, the arguments pro and con have been made even less distinct. Cutting has become more difficult, spending more easily justified.

        The Cato paper offers a possible solution: the convening of a corporate welfare reform commission.

        That commission, the paper says, could function like the successful military base closure commission, proposing to Congress a list of cuts on which members of Congress would have to declare themselves.

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