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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (283016)	4/4/2006 5:08:58 PM
From: Road Walker	Read Replies (1) \| Respond to of 1573868

re: The spending is a subsidy to the middle class. The taxes are how its funded. If they got rid of the taxes or if they increased them 10 fold it wouldn't change the nature of the subsidy. SS has never been considered a subsidy, just doesn't fit the definition. re: Taking less from you, isn't giving to you. The net flow is still from the company to the government assuming that the company does not get any actual subsidies. Wrong again. You sure can play fast and loose with semantics to support your POV. Subsidy From Wikipedia, the free encyclopedia In economics, a subsidy is generally a monetary grant given by government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. Subsidies are also referred to as corporate welfare by those who oppose their use. The term subsidy may also refer to assistance granted by others, such as individuals or non-government institutions, although this is more usually described as charity. A subsidy normally exemplifies the opposite of a tax, but can also be given using a reduction of the tax burden. These kinds of subsidies are generally called tax expenditures or tax breaks. Subsidies protect the consumer from paying the full price of the good consumed, however they also prevent the consumer from receiving the full value of the thing not consumed – in that sense, a subsidized society is a consumption society because it unfairly encourages consumption more than conservation. Under free-market conditions, consumers would make choices which optimize the value of their transactions; where it was less expensive to conserve, they would conserve. In a subsidized economy however, consumers are denied the benefit of conservation and as a result, subsidized goods have an artificially higher value than expenditures which do not consume. Subsidies are paid for by taxation which creates a deadweight loss for that activity which is taxed. en.wikipedia.org