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subsidy

definition


In economics, a subsidy is generally an amount of money given by the government to lower the cost of something, because it doing or buying that thing is what the government wants to encourage. Alternatively, a subsidy can also be given via the tax system, by reducing taxes owed as a result of doing something. These kinds of subsidies are generally called tax expenditure?s or tax breaks. Governments may sometimes subsidize a whole industry to produce goods for export or domestic consumption.


international trade, tax reform, World Trade Organization, corporate welfare?, tax credit?, refundable tax credit?, oil subsidy


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