Tax Subsidy
Jump to navigation
Jump to search
A Tax Subsidy is a financial assistance provided by governmental unit to a taxpayer to reduce income taxes.
- AKA: Tax Expenditure
- See: Tax Deduction, Tax Exemption, Tax Abatement, Taxpayer, Tax Credit.
References
2016
- (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Subsidy#Tax_subsidy
- Government can create the same outcome through selective tax breaks as through cash payment. For example, suppose a government sends monetary assistance that reimburses 15% of all health expenditures to a group that is paying 15% income tax. Exactly the same subsidy is achieved by giving a health tax deduction. Tax subsidies are also known as tax expenditures. Tax subsidies are one of the main explanations for why the American tax code is so complicated.