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Politics : Formerly About Advanced Micro Devices
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To: J_F_Shepard who wrote (643965)1/29/2012 1:26:49 PM
From: TimF1 Recommendation  Read Replies (1) of 1580776
 
Thee reasons.

1 - Targeted tax breaks aren't really subsidies (at least not if they aren't refundable credits). They have the same or almost the same economic incentive effects as subsidies, so I'll sometimes call them "effective subsidies", but they are the government taking less from someone not giving to someone.

2 - Most of the "oil subsidies" aren't even "effective subsidies", they aren't targeted tax breaks, because

A - They apply to corporations in general. They aren't targeted.
B - Many of them aren't so much tax breaks as focusing the taxes only on income, rather than revenue. Allowing deductions for legitimate business expenses isn't a tax break.

3 - Counting tax breaks, even broadly allowed ones, as subsidies, still leaves the net subsidy for oil companies as negative, since the oil industry pays extra taxes that the products of other industries are not subject to, and those extra taxes are larger than the tax breaks the oil companies get.
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