Our server costs ~$56 per month to run. Please consider donating or becoming a Patron to help keep the site running. Help us gain new members by following us on Twitter and liking our page on Facebook!
Current time: July 21, 2025, 10:54 pm

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Tea Party candidate taken behind the woodshed by an old man asking a simple question
#38
RE: Tea Party candidate taken behind the woodshed by an old man asking a simple question
(June 21, 2014 at 1:42 pm)Cthulhu Dreaming Wrote:
(June 20, 2014 at 11:38 am)Heywood Wrote: Not taxing something is not a subsidy.

Pedantically, correct. They are not the same thing. In reality - the tax exemption is worth *more* to the recipient and costs everyone else more than. A subsidy does.

Let's do a little thought experiment to illustrate this - I'll keep it simple for purposes of illustration, which will affect the magnitude of the effects, but will retain their relative differences.

The king has three subjects, each of which is taxed equally 100 gold coins. The kingdom requires 300 gold to keep it running. The king doesn't like all if his subjects equally though, and so has a plan to continue to apportion taxes equally amongst his taxpaying subjects, while favoring those he likes.

The king likes subject A very much, and grants him an exemption from taxes. A pockets 100 gold he would otherwise pay.

The 300 gold tax burden is split between B and C, who must now pay 150 each.

But wait, the king also favors subject B, but not as much as subject A - and grants him a 100 gold subsidy, something not accounted for in the original castle budget, which now must be shifted onto C.

Net effect, A is 100 richer, B is 50 richer, and C is 150 poorer. Even though B comes out ahead in this scenario, he comes out less favorably than if A was not exempted. Either way, C takes it sans lube.

By gum, you're right. Dollar-for-dollar, tax exemptions are *worse* than subsidies.

Only the magnitudes are exaggerated. The relative impacts are not. Everybody that pays taxes is effectively subsidizing non-taxpayers.

The problem with your analogy is it is not a king granting an exemption but the people who pay the taxes granting the exemption to themselves when the engage in not-for-profit activities. Like Church's or Planned Parenthood.
Reply



Messages In This Thread
RE: Tea Party candidate taken behind the woodshed by an old man asking a simple question - by Heywood - June 21, 2014 at 1:50 pm

Possibly Related Threads...
Thread Author Replies Views Last Post
  Sudan: The real cause behind the war WinterHold 4 924 June 14, 2023 at 6:42 pm
Last Post: brewer
  Who will be next Republican presidential candidate? Fake Messiah 28 2942 June 13, 2022 at 2:49 am
Last Post: The Architect Of Fate
  Republican Party Purge Silver 11 1460 April 15, 2021 at 11:27 am
Last Post: onlinebiker
  Republican Representative compares his party's fight to Imperial Japanese Soldiers Rev. Rye 2 562 November 24, 2020 at 10:12 pm
Last Post: brewer
  UK general election - right wing Conservative party wins large majority Duty 30 2899 December 16, 2019 at 6:12 am
Last Post: Duty
  Your Presidential Candidate. onlinebiker 17 3165 November 2, 2019 at 1:26 am
Last Post: The Grand Nudger
  [Serious] Who's your favorite Dem candidate? EgoDeath 57 9268 October 22, 2019 at 2:50 am
Last Post: EgoDeath
  What job experience would you like to see in a Presidential candidate? onlinebiker 44 4810 February 14, 2019 at 8:26 am
Last Post: Yonadav
  Essex (UK) village used in 'appalling' Trump candidate advert Duty 21 3077 November 1, 2018 at 6:12 am
Last Post: I_am_not_mafia
  He's finally behind bars.... Joods 0 424 September 20, 2018 at 7:56 pm
Last Post: Joods



Users browsing this thread: 1 Guest(s)