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It is not a problem. Just give subsidies as a tax credit.
by LudwigNagasena 6y ago
It is not a problem. Just give subsidies as a tax credit.
- robertlagrant 6y agoThat's still a problem, if you think companies minimising their tax is a problem. The game shifts to creating the correct structure to qualify for tax credits.
- LudwigNagasena 6y agoUhm, I am not sure what you are talking about. Frictions that arise from taking money and giving them back by design don’t arise if you don’t take anything because you provide a tax credit.
- robertlagrant 6y agoI'm talking about the fact that this doesn't address the base problem.
- LudwigNagasena 6y agoSure, I simply addressed this point >It is more efficient to let people keep money than it is to take it from them and give it back Direct subsidies in the form of tax credit don't incur any costs of moving money because no money are moved, but functionally it is almost the same.
- robertlagrant 6y agoThe base problem being that tax law is gameable. That's what the article and comments are about.
- LudwigNagasena 6y agoMy reply was inside a thread on direct subsidies. I still don’t understand what’s your problem.
- robertlagrant 6y agoI don't have a problem, but if you're phrasing things like that then perhaps you're seeing an exchange like this as the equivalent to squaring up outside a pub. Disengaging.