“Well, Farmers Not Have Made Much Money”: Coolidge’s Case Against Subsidies

“Well, Farmers Not Have Made Much Money”: Coolidge’s Case Against Subsidies

It has been said that the U.S. Tax Code is the perfect doppelganger of the block of Swiss cheese, with additional holes than one could count.

Tax expenses, the sources of these holes, proliferate through the Code. an income tax expenditure is really a revenue loss due to making use of the taxation system to advertise social objectives, without directly appropriating income tax dollars. A good example will be the Earned Income Tax Credit, earnings help for low wage earners.

Tax expenses really are a as a type of government subsidy. Subsidies are sums of cash given by the federal government to prop up an industry, business, or number of people. These funds are intended to increases that are ameliorate the commodity or service they provide, or higher generally speaking to show favor to them for any other purposes.

Whether one favors or disfavors specific subsidies, or subsidies in general, is just a determination that is normative. However, we realize from the exemplory case of President Calvin Coolidge which he extremely firmly opposed subsidies in a sector greatly impacted by them today: farming.

Coolidge arrived from a group of farmers, and not-terribly-successful farmers at that. Plymouth Notch is just a rocky, mountainous hamlet.

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