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Politics : Actual left/right wing discussion
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To: Ish who wrote (2389)10/5/2006 11:01:46 PM
From: Peter Dierks  Read Replies (1) of 10087
 
If the new product is the functional equivalent of another heavily taxed good, then exempting it form tax is a subsidy.

If there was a tax of $10 on every pair of women's slacks sold and someone invented skirts, but they were exempted from the tax would it amount to a subsidy (competitive advantage) for skirts?
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