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.
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.
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?
by Dan Harmon 23 months ago
It's tax time. It's also time to work out the details of what the Affordable Care Act has done this past year. Yes, I'm retired, living on SS and what little the recession left of an IRA - I qualify quite easily for an ObamaCare subsidy for my wife. At least for the cheap one,...
by VAUGHAN01 9 years ago
WHAT IF MY TAX CREDIT IS MORE THAN MY TAXES, DO I GET A REFUND??
by marcals 8 years ago
can I get a tax credit for a new air conditioner
by ParadigmShift... 7 years ago
What are the fundamental differences between the Democratic and Republican parties??Can there be a happy medium?
by Charlu 6 years ago
If everything you bought certified US made was tax free would you buy it to help the economy?If the US government designated that all products manufactured in the US (subject to intense audits) were tax free would you buy it, even though it may still cost a little more to boost the economy...
by cmorsewin 7 years ago
Tax credit for all 3 children?in 2011 tax year I will make roughfly 45,000 fileling head of houshold married my wife does not work and I have 3 children will I get tax credit for all 3 or does it stop at 2 I live in washington state
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