"F.O.A.D." wrote in message
m...

On 9/4/13 6:51 PM, Mr. Luddite wrote:


"F.O.A.D." wrote in message
...

On 9/4/13 4:51 PM, Mr. Luddite wrote:


"F.O.A.D." wrote in message
m...

On 9/4/13 12:16 PM, wrote:
On Wed, 04 Sep 2013 11:09:12 -0400, "F.O.A.D."
wrote:

On 9/4/13 10:59 AM, wrote:
On Wed, 04 Sep 2013 08:15:00 -0400, "F.O.A.D."
wrote:


Let's not forget the depreciation allowances airlines get for
buying
equipment. These are subsidies.

What business doesn't get depreciation allowances?

You didn't answer but I bet you took an accelerated depreciation
allowance on your new printer. If you didn't, fire your
accountant.

You folks are really stretching to find these mythical subsidies
but
the fact is the passenger is paying more than the government
gives
them back.
That is far from true in rail where the ticket price doesn't
even
cover the cost of running the train.


There's nothing mythical about depreciation allowances, and they
are
subsidies.

Period.

Every business in the US gets them too (even your little hobby).
That
is not the same as a direct cash infusion like we give passenger
rail.


A subsidy by any other name would not smell as sweet, eh?

-------------------------

I don't understand what you are talking about.

I go out and buy a brand new piece of equipment for my business
....
call it a fork truck.
I pay the full value of the fork truck to the manufacturer.

I use the fork truck in the business. Over the years it
depreciates in
value.
I use the depreciation tables as to it's value when filing taxes.

How the hell is *that* a subsidy?


Special tax breaks for depreciation are tax expenditures because
they
are government spending programs that give out tax breaks instead of
direct payments.

---------------------------

Different animal altogether. Tax breaks on investments that are
intended to stimulate purchases or further technology is one thing.
Good
example is the federal tax credits given if you buy an electric or
hybrid auto or if you install solar panels on your business or
house.
Those are subsidized purchases in the respect that you "get back" in
tax
credits some of your investment costs.

Depreciating the value of purchases of equipment used in businesses
.... even cars .... according to a standard depreciation schedule is
not
a "subsidy" of any kind or shape.



Really? The net effect is a lowering of taxes...a subsidy allowed by
the
government.

---------------------------------

Lowering from what? Home ownership spurs the economy in a big way.
The more people who can legitimately buy a house (and make the
payments), the more snowballing effect it has on the economy.
Construction goes up, appliance sales go up, unemployment goes down
and tax revenues increase.

It's not a subsidy. It's a tax incentive for home ownership that
increases tax revenues.