If the incentives are different, who receives the direct subsidy can make a big difference.
The parking lot, in short, was a sham excuse for a direct subsidy.
FORBES: Constitutional Protection Against the Corporate State
Under the original BABs program, the Treasury Department makes direct subsidy payments to State and local governmental issuers in a subsidy amount equal to 35 percent of the coupon interest on the bonds.
One idea being bandied about entails replacing the tax exclusion for interest on state and local bonds with a direct subsidy to the issuer of 15% for the interest paid on those bonds.
FORBES: Muni Bond Group To Washington: Hands Off Our Tax Exemption
In 1960 only 15% of federal income tax returns had a zero tax liability, due mostly to low taxable income, a standard deduction, the personal exemption, the dependent exemption, and the Earned Income Tax Credit (a direct subsidy to people for being poor).
FORBES: Representation Without Taxation - So Where's the Outrage?
Like Europe, the ultimate price for the growing corporate state will be paid by the American consumer (in the form of higher prices, reduced choice, and foregone innovation), and the American taxpayer, who is already facing an enormous bill from the direct subsidy of favored constituents.
Tierney has introduced tax reform legislation that would require all tax-exempt municipal bonds to be issued where there would be a direct-pay subsidy of 28% after this year.
FORBES: Bondland Boys Discounting A Dynegy Default, Wait To See Proof Of QE3
Rather than muck up industry pricing to subsidize certain consumers, Washington should make the subsidy aboveboard and direct.
"The 1992 agreement allows both sides to get subsidy, both direct and indirect, the way we do it, " Mr Leahy said.
BBC: NEWS | Business | Farnborough forms arena for corporate wars
Over the next two decades, federal subsidy became more direct.
Like BABs, AFF Bonds would be conventional taxable bonds issued by State and local governments in which the Federal government makes direct payments to State and local governmental issuers in a subsidy amount equal to 28 percent of the coupon interest on the bonds.
应用推荐