Tuesday, October 11, 2011

Bombardier versus the Taxpayer

Since 1982, Bombardier Inc. has received over $1-billion in government grants and loans.

According to Andrew Coyne writing in Maclean's, Bombardier is not in the aircraft business. "It's business is collecting subsidies. The aircraft are effectively loss leaders, sweeteners thrown in to keep the supply of government funds coming ..." The cost of these subsidies is borne by the taxpayer.

The company recently posted notices of dividends. One would think the government to demand re-payment of this corporate welfare before the company is allowed to distribute profits to shareholders.

To the extent that dividends are paid, to that extent the taxpayer is subsidising the company's shareholders.

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