By and large, government payments (or any payments) encourage behavior, and taxes discourage it.
Some have said that social welfare programs - aid to families with dependent children, etc. - has the effect of "encouraging" lack of work and unwed parenthood. Even FDR said that welfare can have "narcotic effects." (Although I would hope that everyone would favor help for the "truly needy" - but how do we define that?) Therefore it's possible to say that welfare can encourage behvior that society disfavors.
So my question is, what behavior does "corporate welfare" (such as tax credits tied to oil companies' exploration efforts) encourage? And what behaviors would removing these credits discourage?
Is one system rewarding work and effort, and the other discouraging it?
2007-01-19
05:15:48
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3 answers
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asked by
American citizen and taxpayer
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Politics & Government
➔ Other - Politics & Government