3 ms·
I am not trying to mislead anyone, this is my reasoning for using the language that I did. A subsidy is a sum of money given by the government to a corporation,
by cjohnson318 6y ago
I am not trying to mislead anyone, this is my reasoning for using the language that I did. A subsidy is a sum of money given by the government to a corporation, so it is analogous to government spending on social welfare programs. A tax cut reduces the government's income, which on a balance sheet, has the same effect as government spending. Sure, a tax cutting policy is not the same as a spending policy, but their net effect on cash flow are both negative.