April 23, 2014

Taxpayers subsidize Walmart and the Walton family by $7.8 billion a year

AFL- CIO - A new report from Americans for Tax Fairness shows that taxpayers in the United States subsidize Walmart and the Walton family, who owns the majority of Walmart stock and is the richest family in the country, by at least $7.8 billion annually. At the same time, the report shows, taxpayers help pad Walmart and the Walton family's profits.

The report makes it very clear that not only do Walmart and the Waltons not need these subsidies, but that the company could more than afford to raise salaries and improve benefits for their workers, more than half of whom made less than $25,000 last year:

Walmart is the largest private employer in the United States, with 1.4 million employees. The company, which is number one on the Fortune 500 in 2013 and number two on the Global 500, had $16 billion in profits last year on revenues of $473 billion. The Walton family, who owns more than 50 percent of Walmart shares, reaps billions in annual dividends from the company. The six Walton heirs are the wealthiest family in America, with a net worth of $148.8 billion. Collectively, these six Waltons have more wealth than 49 million American families combined.

3 comments:

Anonymous said...

Your article does not explain HOW these subsidies come about???

Anonymous said...

Walmart employees are so poorly paid, they need food stamps, section 8 housing, and medicaid to make ends meet. Those programs for the poor are used by Walmart as a subsidy to support paying poverty wages.

geonomist said...

Is the obvious solution — pay employees more — the best or only solution? What about some company stock to employees so they’d get the dividends now going to owners such as the Walton family? And bigger picture, what about geonomics?

What about paying citizens a dividend from our common wealth, from our society’s surplus, which is the value of land and resources? What about de-taxing wages? Once we increase the income to everyone including working people and decrease their costs — such as taxation and inflation — then they’ll be in the position where they’ll have the leverage to negotiate higher, fairer wages without politicians butting in.

Further, what about ending direct subsidies to corporations, such as the road to Walmart HQ paid for with public tax dollars? Then corporations won’t be so filthy rich … and taxists won’t be so envious. Critics point out the end result — an amassed fortune — but turn a blind eye to the ways that the insiders hog the common wealth for themselves. More at Progress.org.