3 ms·

Subsidies and preferential tax treatment are textbook methods of state support for enterprise. This is acknowledged in the article with literally the first sen

Subsidies and preferential tax treatment are textbook methods of state support for enterprise. This is acknowledged in the article with literally the first sentence. > China’s tech champion got as much as $75 billion in tax breaks... edit: In any case, state support for American businesses goes way beyond preferential tax treatment. Boeing, TBTF bank bailouts, farm subsidies and bailouts, wars to open up foreign markets, the list goes on for centuries...

100011 7y ago
What some are failing to do wrt. to US companies is to drop the legal fictions and instead follow the economical laws, and money. The tax-accountant fiction doesn't mean it's not economically supported (by US state). China does it more openly, in US tradition of procedural liberalism requires legal and theoretical fictions to mask what would otherwise be obvious State support.
lettergram 7y ago
> The largest portion of assistance, about $46 billion, comes from loans, credit lines and other assistance from state lenders, the Journal’s review showed. The company saved as much as $25 billion in taxes between 2008 and 2018 due to state incentives to promote the tech sector. Among other assistance, it enjoyed $1.6 billion in grants and $2 billion in land discounts. My only statement is that I wouldn’t call tax subsidies government support. Support implies giving something to the company. Bailouts are arguably support, not taxing a key industry is not exactly support.
- chishaku 7y ago
  > Support implies giving something to the company. I can understand that interpretation. From a public policy perspective though, tax subsidies are explicit support. Take an example that came up a lot in these forums, Amazon's HQ2 deal with NYC and NY state. Tax incentives were the bulk of the deal.

3 ms·

Subsidies and preferential tax treatment are textbook methods of state support for enterprise. This is acknowledged in the article with literally the first sen

by chishaku 7y ago

100011 7y ago
What some are failing to do wrt. to US companies is to drop the legal fictions and instead follow the economical laws, and money. The tax-accountant fiction doesn't mean it's not economically supported (by US state). China does it more openly, in US tradition of procedural liberalism requires legal and theoretical fictions to mask what would otherwise be obvious State support.
lettergram 7y ago
> The largest portion of assistance, about $46 billion, comes from loans, credit lines and other assistance from state lenders, the Journal’s review showed. The company saved as much as $25 billion in taxes between 2008 and 2018 due to state incentives to promote the tech sector. Among other assistance, it enjoyed $1.6 billion in grants and $2 billion in land discounts. My only statement is that I wouldn’t call tax subsidies government support. Support implies giving something to the company. Bailouts are arguably support, not taxing a key industry is not exactly support.
- chishaku 7y ago
  > Support implies giving something to the company. I can understand that interpretation. From a public policy perspective though, tax subsidies are explicit support. Take an example that came up a lot in these forums, Amazon's HQ2 deal with NYC and NY state. Tax incentives were the bulk of the deal.