4 ms·

“tax-free fuel” is not a subsidy.

• Retric 5y ago
  Their excluded from sales taxes which go up to 9.55% state wide and higher in some locations. Taxing everything else but X, is a subsidy on X.
  • selectodude 5y ago
    Only international fuel is duty-free for obvious reasons. Domestic fuel is taxed, though the states (IL, GA) with large hubs have curiously low taxes on kerosene.
    • deleted 5y ago
      [deleted]
• toss1 5y ago
  An exemption when everyone else is taxed on the same commodity is a subsidy - the untaxed people/companies are free-riding on the rest of the infrastructure/services/etc. for which the other taxpayers are paying. The result of giving a $100 tax exemption/credit is literally the same as no tax exemption/credit and sending a $100 check to the subsidized entity (except for the reduced overhead & bookkeeping on both ends).
• TulliusCicero 5y ago
  Absolutely it is. If everyone else is paying, but not you, you're being subsidized.