The federal government spent $92 billion in direct and indirect subsidies to businesses and private-sector corporate entities - expenditures commonly referred to as corporate welfare - in fiscal year 2006. Supporters of corporate welfare programs often justify them as remedying some sort of...

William A. Niskanen's 2006 paper, “Limiting Government: The Failure of ‘Starve the Beast,'” dealt a severe blow to the notion that tax cuts lead to smaller government. Niskanen argued that (1) government's ability to borrow loosens the fiscal constraints of reduced revenue, and (2) as a...