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depreciation is certainly a subsidy to capital, which is entirely unnecessary and distorts markets by upsetting the pricing mechanism. financial firms will happ
by clairity 4y ago
depreciation is certainly a subsidy to capital, which is entirely unnecessary and distorts markets by upsetting the pricing mechanism. financial firms will happily provide upfront capital to any future profitable project.
- alvah 4y ago"depreciation is certainly a subsidy to capital" Only if you twist the meaning of "subsidy" to mean "any level of taxation less than 100%". Which may be what you mean, but (correctly IMO) isn't generally a popular POV.
- clairity 4y agoit's a carveout and preferential treatment of (certain kinds of) capital. that's a subsidy, no matter the mechanism of return.