4 ms·
Why? The net effect is exactly the same.
by KirinDave 7y ago
Why? The net effect is exactly the same.
- tim333 7y agoGovernment takes money from business = tax Government gives money to business = subsidy The oil industry is the first one even if depreciation allowances are involved in the tax calculation.
- greglindahl 7y agoYou might want to check out the concept of a Tax Expenditure https://en.wikipedia.org/wiki/Tax_expenditure https://en.wikipedia.org/wiki/Tax_expenditure, which is when a government lowers tax on something.
- tim333 7y agoIt's still an odd use of the word subsidy. I wish I could subsidise the oil industry by having them send me large amounts of money. Maybe we can kill the oil industry by tripling the subsidies so they have to send the government three times as much? It makes it hard to have sensible discussion. Is there a word for whether the government pays to the industry or visa versa if tax and subsidy have been redefined to no longer mean that?