Really depends on how you defne subsidies. Lots of folks on here who complain about subsidies dont even realize that many of the things that they receive as citizens could be considered as subsidies.
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"Shoot him again....his soul is still dancing"
I'll answer first. No. A deduction allows you to keep some of your own money. A subsidy is receiving someone else's money.
Exactly,
I never could understand the notion that the democrats are for the "woykin man." It did not take me long to realize that they want to take more of my money and subsidize the people who don't want to work.
C. Davis
__________________ Am I greedy because I don't want to give you what is mine?
or
Are you greedy because you want to take what is not yours?
Really depends on how you defne subsidies. Lots of folks on here who complain about subsidies dont even realize that many of the things that they receive as citizens could be considered as subsidies.
Interesting take. I see it as I make money, the government takes it and subsidizes somebody else so they
get something they either can't afford or would not otherwise have. The key operative phrase is that the
government TAKES MY money to give it to others.
What might be some of the things we receive as citizens which could be considered subsidies ?
Yes, I consider it a subsidy. On the otherhand, there may be very specific definitions that apply for various purposes that I am unaware of. From my view, it makes little difference whether a farmer is given a tax deduction for something that others in a substantially equivalent position do not get or whether the farmer is given a "subsidy."
In some cases I may support subsidies; in other cases I may not support subsidies. I don't see any reason to subsidize farmers, and I grew up on a farm.
Alsatian, I was thinking secifically of oil companies. Ifthey spend money on exploration, some of that money is deducted from their income, meaning that they pay lower taxes. People call this a subsidy. Not in my book.
To me, a subsidy is not letting people keep their own money. Now, take someone who paid no taxes last year and give them $600 in a "stimulus package," well, that's a subsidy.
Ifthey spend money on exploration, some of that money is deducted from their income, meaning that they pay lower taxes. People call this a subsidy. Not in my book.
I don't know exactly how oil subsidies for energy exploration work but it can't be like that. Any expense that any company has is automatically a "deduction" so I'd bet their not just claiming "some" of their expense. I'm also betting that when "government subsidies" are mentioned they are either in hard dollars or in tax credits (as opposed to deductions).
Btw, if energy companies are using public land to obtain fossil fuels for little or no lease money paid for use of the land...isn't that a huge subsidy in itself???
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Looney tunes deductive reasoning:
--Me smell Mohican burning
--Me last Mohican
--Must be me!!!
--EEEOOOWWW!!!!!
If you're just receiving government money and it's not the result of having your tax liability reduced then imo there is no question about it. Your being subsidized. That's clearly government taking money away from others and subsidizing you. I think a better term, however, would be welfare
It get's a bit more complicatedfor me if we're talking about a tax break. I think it's legitamate for government to use tax breaks to encourage certain behavior. For example, we want people to save for retirement so we offer tax breaks to those who contribute to 401k's and ira's. We give tax breaks to people who reinsulate their homes to encourage saving energy and, to use your example, we give oil company's breaks to explore for oil because we need more energy. I'd say these are legitimate reasons for the breaks.
I would add, however, I do think there have been cases where special breaks are created not for the purpose of encouraging certain behavior but as payback for contributions to political candidates and/or parties. That is of course corruption and abuse of power and is definately not legitimate. I really think the farm bill borders in this category. The farm lobby is powerfull and has great influence on many politicians. I'd have to bet this this is the primary reason for their subsidies and imo it's not legitimate at all.
Tax qusetion for you
