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 ______________________.
A) taxpayers; paying more in taxes than it would without the tax deduction
B) taxpayers; subsidizing the taxpayers
C) Congress; paying more in taxes than it would without the tax deduction
D) taxpayers; paying less in taxes than it would without the tax deduction

Question

Quizplus · Accepted Answer

When a government provides a subsidy, it typically uses taxpayer money to fund the subsidy. A tax deduction allows a company to reduce its taxable income, thereby paying less in taxes than it would without the deduction.

If Company Z Is Receiving a Government Subsidy,the Government Is