What are the fundamental differences in a government grant, tax credit,rebate o

  1. JON EWALL profile image74
    JON EWALLposted 6 years ago

    What are the fundamental differences in a government grant,  tax credit,rebate or a subsidy?

    What are the fundamental differences in a government grant, a tax credit,a government rebate or a government subsidy?
    In one way or another any of the above WILLL  reduce income to the US treasury. CAN THEY BE CONSIDERED A TAX CUT.

  2. reena_yadav profile image76
    reena_yadavposted 6 years ago

    Government grants are economic aid issued by the government which comes out of the general federal revenue. A federal grant is an award of financial assistance from a federal agency. Grants are federal assistance or loans to individuals, benefits or entitlements and can be used to acquire property or services for the government's benefit.

    A tax credit is a sum deducted from the total amount a taxpayer owes to the state. A tax credit may be granted for various types of taxes such as income tax, property tax or VAT.

    A tax refund or tax rebate is a refund on taxes when the tax liability is less than the taxes paid. Taxpayers can often get a tax refund on their income tax if the tax they owe is less than the the sum of the total amount of the withholding taxes & estimated taxes. It is always given back at the end of the financial year.

    A subsidy is a form of financial assistance paid to a business or economic sector. Most subsidies are made by the government producers or distributors in an industry to prevent the decline of a particular industry. Subsidies can be regarded as a form of protectionism or trade barrier by making goods and services artificially competitive against imports. They have the ability to distort markets and have large economic costs.

  3. JON EWALL profile image74
    JON EWALLposted 6 years ago

    GRANTS  a gift from Uncle Sam’s taxpayers, no payback required

    TAX CREDIT    Uncle Sam’s gift to reduce your tax liability generally when you put out your money first.

    REBATE       A payment from Uncle Sam  for whatever reasons he decides to give taxpayer money away

    SUBSIDY   A form of a tax credit or a rebate for industries that require them to spend huge sums of up front costs to produce a vital product for the benefit of the government and the people.eg.

    Ethanol industry  receives a $9 billion  subsidy in addition to grant money
    Oil, gas industry receives a $4 billion subsidy for exploration and start ups. NOTE that the oil industry pays the government a 18% royalty for every barrel pumped to the surface and 40% in taxes.
    Other industries such as the solar, wind, electric cars and hydro power have received grants, tax credits, rebates and subsidies  from the stimulus funds.

    President Barak Obama’s plan to reduce the countries need for foreign oil is.

    Tax oil production   RESULT higher gas prices
    Void government subsidies (  $4 billion ) to the oil industries  RESULT higher cost to produce oil and higher gas prices
    Delay permit approvals to drill in Alaska, the US and the gulf   RESULT  US to be at mercy of higher Opec cost for oil to US
    ADDITIONAL GOVERNMENT REGULATIONS on oil drilling    RESULT  higher production cost
    Delay approval of gas/oil pipe line from Canada and Alaska
    Raise mileage standards to auto makers  RESULT government advocating hybrid car production

    RESULT of the above loss of millions of JOBS and higher cost to consumers.
    REALLY does Obama's plan wean the US off of foreign oil?