Realities of a Booming Economy

By Ruth Benn

he government brags about the country’s economic health, but almost all the benefits accrue to large corporations, the military and the rich. President Clinton’s February 7 budget pledged as much as $12 billion more to the military than the current budget allocated, a real spending increase of 1 percent (including more than a billion for Colombia’s corrupt military and an infuriating $1.9 billion for “missile defense,” when total nuclear disarmament would better protect us all). Yet loud voices in Congress—and in the presidential primary races—are saying that military spending is too low. Few of them are talking abut what we’re giving up for it—and who gains. Here, for your tax-time edification, are some economic data they aren’t talking about.

Top 15 U.S. Military Contractors

Where Your Income Tax Money Really Goes
U.S. Fiscal Budget Fiscal Year 2001
Federal Funds Outlays

Corporate Tax Breaks Exceed Taxes Paid
Corporations increasingly take advantage of a tax loophole that allows them to deduct interest on borrowed money. In the 1980s, for the first time, the amount saved through this loophole exceeded the total taxes that corporations paid.

Sources: 1999 Military Almanac, Center for Defense Information, 1779 Massachusetts Ave., NW, Washington, DC 20036, (202)332-0600, www.cdi.org, info@cdi.org. National Priorities Project, including statistics on the impact of military spending on your state and community, 17 New South St., #302, Northampton, MA 01060, (413)584-9556, www.natprior.org, info@natprior.org

Changing U.S. Family Incomes

Trade-offs
Costs of Key Domestic Programs vs. Major Military Programs

Two Decades of Social Spending
A Few Ups, Billions Down, Never Enough

Ruth Benn is Director of the WRL National Office.