Do you consider deducting business expenses from revenue to determine profit for taxes a subsidy?
“Do you consider deducting business expenses from revenue to determine profit for taxes a subsidy?” —thackney
No, as long as it is a legitimate business expense. As Alberta's Child explained in post 4,
“This provision was originally intended to limit deductions to work trucks, but it has spawned a whole generation of self-employed professionals (lawyers, accountants, real estate agents, etc.) who buy large SUVs that have no real connection to the work they do.” —Alberta's Child
Provided that every citizen can deduct his home and vehicle purchases/upkeep (read expenses) from his “revenue” then the answer would be no.
But given the treatment is only provided to incorporated “citizens” then I would have to say yes it is a subsidy.
I believe there is a fine line between a true business expense and a "subsidy" is crossed when the legal definition of a "business expense" is set up in such a way that some purchases are favored over others for no objectively good reason.
That seems to be the case here, since I can find no reason why a new computer, a copying machine, or a 6,000-lb. vehicle would qualify for a Section 179 tax deduction, but a 5,000-lb. vehicle would not.
This isn't a subsidy for the business owner, mind you. It's really a subsidy for SUV and light truck manufacturers.