Comment Re:Tax breaks = Subsidize? (Score 1) 123
What is the difference exactly between giving you $100 and lowering your tax by $100? Of course they're the same and that's why the governments favourite way to partially subsidize projects is tax breaks.
Even the politicians are honest about it, when they lower the tax on say food or books they actually say they're subsidising food or books.
I understand where you're coming from, but there are some practical and philosophical distinctions between the two:
- With an actual subsidy they're directly redistributing money from one group to another.
- With a tax break it's a lot less clear cut. For all we know it's a net tax gain from the extra payroll taxes, etc.
- A subsidy can actually prop up a failing business, whereas tax breaks (while helpful) can't help if your expenses are still greater than your income.
- It's cheaper to give a tax break of $100 than a subsidy of $100, since money tends to evaporate as it passes through a bureaucracy.
- Ideologically, you don't want to encourage the idea that all income is the government's until they let you keep it.
- Politicians aren't being honest when they spin tax credits as subsidies or reductions in budget growth as budget cuts (for another example).