tooAlive
Silver Member
I thought this was common knowledge but apparently it's not. Hopefully this thread will finally put this misconception to rest.
As you can see, a tax break could not possibly classify as a subsidy. A tax break is not a gift, nor is it financial assistance; it's simply allowing a person or corporation to keep more of the money that is already theirs.
Here's another great example of why tax breaks are nowhere near being considered subsidies.
The Difference Between a Tax Break and a Subsidy - Reason.com
Subsidize - to aid or promote (as a private enterprise) with public money; to purchase the assistance of by payment of a subsidy .
Subsidize - Definition and More from the Free Merriam-Webster Dictionary
Subsidy - a grant or gift of money.
Subsidy - Definition and More from the Free Merriam-Webster Dictionary
As you can see, a tax break could not possibly classify as a subsidy. A tax break is not a gift, nor is it financial assistance; it's simply allowing a person or corporation to keep more of the money that is already theirs.
Here's another great example of why tax breaks are nowhere near being considered subsidies.
The Difference Between a Tax Break and a Subsidy - Reason.com
On Thursday, Virginia Democratic Party executive director David Mills said the oil companies were "getting free money from the government."
Just one problem. Those "subsidies" are not subsidies. They are tax breaks.
Of the $4 billion in alleged subsidies to Big Oil, $1.7 billion derives from a domestic manufacturing tax deduction intended to keep factories in the U.S. It is available to every company, not just oil companies.
Another $850 million comes from another tax provision, also available to every U.S. corporation, that gives a credit for taxes paid to foreign countries—just as you can deduct your state taxes from your federal income taxes.
Yet another $1 billion comes from tax rules that let oil companies treat oil in the ground as capital equipment for write-down purposes, and the rest comes from rules that let oil companies write off certain business costs immediately.