Small businesses are undoubtedly the backbone of our economy. We would all agree that more must be done to foster their growth. However, when misguided government efforts to do so lack the appropriate oversight and rules, a few bad acting corporate entities will exploit flawed policies and line their pockets with taxpayer-funded dollars.
Satellite provider Dish Network exemplified this when it took advantage of a program designed to help small business win coveted spectrum in a recent auction held by the Federal Communications Commission (FCC). Dish has an 85-percent financial interest in Northstar Wireless and SNR Wireless, two companies that didn't exist until a few months before the auction. Because they have little to no revenue, they qualified as small businesses under the FCC's Designated Entity (DE) program and got a 25-percent bidding credit. They outbid major competitors on countless occasions, and Dish ultimately won about half of the licenses up for grabs – more than $13 billion worth, with a more than $3 billion discount, courtesy of taxpayers. Only AT&T spent more
About UsTaxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government's effects on the economy. Through its network of taxpayers and citizen activists, TPA will hold politicians accountable for the effects of their policies and will offer real solutions to runaway deficits and debt.