Indiana

Subsidize This!

By Abdul Hakim-Shabazz

I can completely understand citizens who are opposed to the deal reached between the Indiana Pacers and the City of   Indianapolis over Conseco fieldhouse’s operations.  Frankly, I would have liked to have seen the City take over the facility and the Pacers pay rent and Indy collect the non-Pacer revenue.  However, the deal is what it is.

With that said, the Pacer deal did get me thinking about the idea of government subsidies for private enterprise.  Subsidies come in a number of different forms, direct cash assistance,  tax abatements, exemptions, credits, etc.

Governments are notorious for using tax policy for social engineering, by taxing behavior and activities it doesn’t like and giving a break for behavior it wants to encourage.  So if we want to eliminate a subsidy for the Pacers (a private business) then shouldn’t we do it for all private businesses.

And why stop with private business?  Individuals get a number of tax exemptions, children, home mortgage interest, charity, medical expenses, education, casualty and theft loss.  The list goes on and on.

And while we’re at it, let’s also look at financial aid, Medicaid, Medicare these are also subsidies in the sense that the government helping defray the true costs of  these services.  And remember the average Social Security recipient is getting back 12 times more than what they paid in, when adjusted for inflation.

So, I ask you.  Are you willing to give up your subsidies?  Are you willing to have grandma move back in?  Are you willing to give up those tax exemptions you get for the kids and your home-based business ventures?  If you are, I’m proud of you.  If not, don’t complain about corporations taking advantage of the same opportunities that you do.

Full post as published by Indiana Barrister on July 14, 2010 (boomark / email).