2 ms·
The EU consider the lack of a tax on a specific sector to be a subsidy. e.g. The UK government's reduction in tax on domestic fuel bills amounted to a subsidy.
by NeedMoreTea 7y ago
The EU consider the lack of a tax on a specific sector to be a subsidy. e.g. The UK government's reduction in tax on domestic fuel bills amounted to a subsidy. That made the UK the EU's largest subsidiser of fossil fuels in the face of EU efforts to phase them out.
Good enough for me.
Edit: WTO definition of subsidies includes "government revenue that is otherwise due, foregone or not collected (e.g. fiscal incentives such as tax credits)". Pdf: http://www.wto.org/english/docs_e/legal_e/24-scm.pdf http://www.wto.org/english/docs_e/legal_e/24-scm.pdf
- mises 7y agoThat's a crazy definition. By that logic, every dollar up to the optimal point on the Laffer Curve is a "subsidy". Not taxing is not a subsidy. Also, I'm not really concerned how the EU defines any thing; I whole-heatedly disagree with almost every thing they do. The article is about America; we can stick with her definitions. Let's try "government hands you a check for doing something", which is basically what most economists use.