Rich Tax Breaks Bolster Makers of Video Games

[MARCUSDJACKSON]

HappySqurriel said:

While there is no doubt that tax deductions, tax credits, and all form of subsidies benefit companies in the industries that are lucky enough to be favoured by the political class, the fact that there is no free lunch and these subsidies come at the expense of other individuals and businesses means that their impact on the economy is at best neutral; and most likely detrimental in general.

Personally, I suspect that the economy is worse off because of the favouritism in the system. The reason for this is simple, the vast majority of investment ideas that are worthwhile can achieve adequate sales or find adequate capital to survive and thrive in the free market; when the government has to invest in a business or market to ensure that it survives they’re (more often than not) picking a loser. In the process of funding loser businesses the government is forced to raise taxes on everyone else, and businesses that are just getting by suddenly become losers and a feedback loop is formed. With how inefficient the government is, the distribution of this capital leaves most businesses with less money that they would have had otherwise.

 

Eliminate subsidies and loopholes and cut taxes proportionately, and the economy will be better off for it ...

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