Are We Talking Tax Breaks or Subsidies?

We can argue honestly whether or not to give tax breaks to oil companies (rather then end them, I prefer to extend them to all parties), but it is a mistake to refer to them (tax breaks) as subsidies. I hear and read a great deal lately about so-called subsidies for oil companies. It’s not clear to me if these people are referring to actual subsidies, or just tax breaks.

Tax Breaks Aren’t Subsidies – The Freeman: “When is a subsidy not a subsidy? When it’s a reduction in taxes. There’s a baffling amount of confusion over what should be a simple matter. Tax reductions, credits, deductions, and exemptions are frequently mistaken for subsidies. This shouldn’t be. Morally they are worlds apart.”

Related links:
Oil Tax Breaks Survive Senate Vote
Who really pays corporate taxes?

  • Seth

    Such torture of language should be our first clue to a person’s credibility.