Question

If company Z is receiving a government subsidy, the government is taking money from ____________ and giving it to company Z. If company Z is getting a tax deduction (instead of receiving a subsidy) then company Z is ______________________.

Answer 1

If company Z is receiving a government subsidy, the government is taking money from taxpayers and giving it to company Z.  

If company Z is getting a tax deduction (instead of receiving a subsidy) then company Z is paying less in taxes than it would without the tax deduction.

What is subsidy?

A subsidy is a government payment made directly or indirectly to individuals or businesses, usually in the form of cash or a targeted tax relief.

A subsidy, often known as a government incentive, is a type of financial assistance or support given to a certain economic sector.

Thus, the correct option is taxpayers, and is paying less in taxes than it would without the tax deduction.

Learn more about subsidy

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