While Walmart and McDonald's do not receive direct taxpayer-funded subsidies, their employment practices have significant implications for public assistance programs.
Many employees at these corporations earn wages low enough to qualify for federal assistance programs such as the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. A 2020 report by the Government Accountability Office (GAO) revealed that Walmart and McDonald's have substantial numbers of employees enrolled in these programs. For instance, in nine states analyzed, Walmart employed approximately 14,500 workers receiving SNAP benefits, while McDonald's employed about 8,800. FOX BUSINESS
Estimating the exact dollar value of public assistance received by employees of these companies is complex due to varying eligibility criteria and benefits across states. However, a 2014 report by Americans for Tax Fairness estimated that Walmart's low-wage workers cost U.S. taxpayers approximately $6.2 billion annually in public assistance programs, including food stamps, Medicaid, and subsidized housing. FORBES
The employment practices of large corporations like Walmart and McDonald's, which result in a significant number of their employees relying on public assistance programs, effectively lead to an indirect subsidy. Taxpayers bear the financial burden of supplementing the income of these workers to meet basic needs, raising questions about wage structures and corporate responsibility.