Forums
New posts
Search forums
What's new
New posts
New media
New media comments
Latest activity
Classifieds
Media
New media
New comments
Search media
Log in
Register
What's New?
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Navigation
Install the app
Install
More Options
Advertise with us
Contact Us
Close Menu
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Forums
The Water Cooler
General Discussion
Solar Roads?
Search titles only
By:
Reply to Thread
This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Message
<blockquote data-quote="tulsanewb" data-source="post: 2524096" data-attributes="member: 2133"><p>On its face that does seem like a fair distinction to make. However, in my opinion (worthless to all but me) that definition for subsidy would only apply if the industry as a whole had to pay no taxes, otherwise it is the same. Giving someone a break on something they owe is the same as paying them. </p><p></p><p>For example, I would say that if all restaurants have to pay for a $300 occupancy permit from the city, but then the city says "Pizza restaurants are going under at an alarming rate. We will waive the occupancy fee for them", that they have just subsidized the pizza industry as it now has $300 less in fees than the rest of the restaurant industry, making it easier for them to stay in business and not have to raise rates. Even though no one is actually being given any money. In my opinion you only start giving someone something when they no longer owe you in the first place. </p><p></p><p>If you owed a friend $1000 and he wanted to help you out, would he say "I'll give you $1000, but you still owe me the $1000" or would he say "just don't bother paying me back?" Either way he is giving you something to help "subsidize" your income. </p><p></p><p>A) Incentive: I owe John $100 for using his lawn to sell lemonade. I give John $100 and he says "nah, it was really only worth $75" and gives me back $25. I have made another $25 (a penny saved is a penny earned). </p><p></p><p>B) Subsidy: I owe John $100. I give John $100. John says "Thanks for using my lawn. I will give you $25 to encourage you to use it again and lower your operating costs". John gives me back $25. End result... I made an additional $25 that day over what I would have otherwise. </p><p></p><p>A == B</p></blockquote><p></p>
[QUOTE="tulsanewb, post: 2524096, member: 2133"] On its face that does seem like a fair distinction to make. However, in my opinion (worthless to all but me) that definition for subsidy would only apply if the industry as a whole had to pay no taxes, otherwise it is the same. Giving someone a break on something they owe is the same as paying them. For example, I would say that if all restaurants have to pay for a $300 occupancy permit from the city, but then the city says "Pizza restaurants are going under at an alarming rate. We will waive the occupancy fee for them", that they have just subsidized the pizza industry as it now has $300 less in fees than the rest of the restaurant industry, making it easier for them to stay in business and not have to raise rates. Even though no one is actually being given any money. In my opinion you only start giving someone something when they no longer owe you in the first place. If you owed a friend $1000 and he wanted to help you out, would he say "I'll give you $1000, but you still owe me the $1000" or would he say "just don't bother paying me back?" Either way he is giving you something to help "subsidize" your income. A) Incentive: I owe John $100 for using his lawn to sell lemonade. I give John $100 and he says "nah, it was really only worth $75" and gives me back $25. I have made another $25 (a penny saved is a penny earned). B) Subsidy: I owe John $100. I give John $100. John says "Thanks for using my lawn. I will give you $25 to encourage you to use it again and lower your operating costs". John gives me back $25. End result... I made an additional $25 that day over what I would have otherwise. A == B [/QUOTE]
Insert Quotes…
Verification
Post Reply
Forums
The Water Cooler
General Discussion
Solar Roads?
Search titles only
By:
Top
Bottom