Tax vs. Subsidy — What's the Difference?

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law.

A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies.

A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions

Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest.

A strain or heavy demand

Financial assistance given by one person or government to another.

Impose a tax on (someone or something)

Money formerly granted to the British Crown by Parliament.

Make heavy demands on (someone's powers or resources)

Financial support or assistance, such as a grant.

Confront (someone) with a fault or wrongdoing

(dated) Money granted by parliament to the British Crown.

Examine and assess (the costs of a case)

Support; aid; coöperation; esp., extraordinary aid in money rendered to the sovereign or to a friendly power.

A contribution for the support of a government required of persons, groups, or businesses within the domain of that government.

Specifically: A sum of money paid by one sovereign or nation to another to purchase the coöperation or the neutrality of such sovereign or nation in war.

A fee or dues levied on the members of an organization to meet its expenses.

A grant from the government, from a municipal corporation, or the like, to a private person or company to assist the establishment or support of an enterprise deemed advantageous to the public; a subvention; as, a subsidy to the owners of a line of ocean steamships.

A burdensome or excessive demand; a strain.

A grant paid by a government to an enterprise that benefits the public;

To place a tax on (income, property, or goods).

To exact a tax from

(Law) To assess (court costs, for example).

To make difficult or excessive demands upon

To accuse; confront

To hold accountable

Money paid to the government other than for transaction-specific goods and services.

A burdensome demand.

A task exacted from one who is under control; a contribution or service, the rendering of which is imposed upon a subject.

(obsolete) charge; censure

(transitive) To impose and collect a tax from (a person or company).

(transitive) To impose and collect a tax on (something).

(transitive) To make excessive demands on.

(transitive) To accuse.

(transitive) To examine accounts in order to allow or disallow items.

A charge, especially a pecuniary burden which is imposed by authority.

A charge or burden laid upon persons or property for the support of a government.

A task exacted from one who is under control; a contribution or service, the rendering of which is imposed upon a subject.

Especially, the sum laid upon specific things, as upon polls, lands, houses, income, etc.; as, a land tax; a window tax; a tax on carriages, and the like.

A disagreeable or burdensome duty or charge; as, a heavy tax on time or health.

A sum imposed or levied upon the members of a society to defray its expenses.

Charge; censure.

A lesson to be learned; a task.

To subject to the payment of a tax or taxes; to impose a tax upon; to lay a burden upon; especially, to exact money from for the support of government.

To assess, fix, or determine judicially, the amount of; as, to tax the cost of an action in court.

To charge; to accuse; also, to censure; - often followed by with, rarely by of before an indirect object; as, to tax a man with pride.

Charge against a citizen's person or property or activity for the support of government

Levy a tax on;

Set or determine the amount of (a payment such as a fine)

Use to the limit;

Make a charge against or accuse;