Subsidies and special (targeted) tax breaks are identical from an economic standpoint. Let me explain why. => https://www.facebook.com/justinamash/posts/10153740170803866 …
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@justinamash 4 elements here: targeted/non-targeted, and taxing less/subsidizing more. All tax breaks = good, even if targeted = less good -
@AristotlesAge Govt taxes $100 per business and mails $10 check to Business X = Govt taxes $100 per business and exempts $10 from Business X -
@justinamash Not the same because of ownership and incentives. Biz #1 gets $10 more of others' money. Biz #2 loses $10 less of its property. -
@AristotlesAge That's just semantics; they are functionally identical. And both scenarios violate the Rule of Law. -
@justinamash Clear distinction, maybe not in gov't net revenues, but in property rights, big dif. #2=less violations, #1=more violations. -
@AristotlesAge You're engaging in form of broken window fallacy. You assume alt to subsidy is lower taxes, but alt to tgtd tax break is not. -
@justinamash Broken window fallacy is about how demand drives supply, but I'm not making that point. I believe in opposite, Say's Law. -
@AristotlesAge You are not seeing half the picture. Subsidies and targeted tax breaks have same opportunity costs. Both cause higher taxes. - 2 more replies
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@justinamash Granted, swapping one person's tax breaks for another's is bad, but tax exemptions are a big improvement over subsidiesThanks. Twitter will use this to make your timeline better. UndoUndo
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