<p>You are correct, that it is taxes less subsidies = taxes - subsidies or in another word net tax for some particular product. For example, following <a href="https://datacatalog.worldbank.org/taxes-less-subsidies-products-current-us" rel="nofollow noreferrer">OECD</a>:</p>
<blockquote>
<p><strong>Taxes Less Subsidies On Products</strong>:
Net taxes on products (net indirect taxes) are the sum of product taxes less subsidies. Product taxes are those taxes payable by producers that relate to the production, sale, purchase or use of the goods and services. Subsidies are grants on the current account made by general government to private enterprises and unincorporated public enterprises. The grants may take the form of payments to ensure a guaranteed price or to enable maintenance of prices of goods and services below costs of production, and other forms of assistance to producers.</p>
</blockquote>
<p>Of course, you can extend the definition outside taxes for just products I just wanted to showcase an example of more detailed definition.</p>
<p>As to its grammatical correctness, English is my 2nd language and this is economics site not site on English language - but you will commonly see 'taxes less subsidies' used all across academic literature. It might appear grammatically incorrect as it is part of the jargon, so of course this is not the way how laymen might discuss taxes.</p>

CC BY-SA 4.0
2021-02-06T20:20:12.573Z
2021-02-06T20:20:12.573Z
1muflon1
<p>What does 'taxes less subsidies' actually mean? It feels like it is grammatically incorrect. I have assumed it to just mean taxes minus subsidies.</p>

CC BY-SA 4.0
2021-02-07T15:11:16.973Z
It means "taxes minus subsidies", though only specific taxes and subsidies, namely taxes on products and subsidies for products, but (in another confusing use of language) not taxes on production or subsidies for production.
Henry
<macroeconomics><taxation>
What does taxes less subsidies mean?
Bill Li
# What does taxes less subsidies mean?

(Asked by: username_0 on 2021-02-06)

What does 'taxes less subsidies' actually mean? It feels like it is grammatically incorrect. I have assumed it to just mean taxes minus subsidies.

**Tags:** macroeconomics, taxation

> **Comments:**
> **username_1**: It means "taxes minus subsidies", though only specific taxes and subsidies, namely taxes on products and subsidies for products, but (in another confusing use of language) not taxes on production or subsidies for production.  

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## 1 answers

### Answer by username_2 on 2021-02-06. Score: 0 | Accepted answer

You are correct, that it is taxes less subsidies = taxes - subsidies or in another word net tax for some particular product. For example, following [OECD](https://datacatalog.worldbank.org/taxes-less-subsidies-products-current-us):

> **Taxes Less Subsidies On Products**:
> Net taxes on products (net indirect taxes) are the sum of product taxes less subsidies. Product taxes are those taxes payable by producers that relate to the production, sale, purchase or use of the goods and services. Subsidies are grants on the current account made by general government to private enterprises and unincorporated public enterprises. The grants may take the form of payments to ensure a guaranteed price or to enable maintenance of prices of goods and services below costs of production, and other forms of assistance to producers.

Of course, you can extend the definition outside taxes for just products I just wanted to showcase an example of more detailed definition.

As to its grammatical correctness, English is my 2nd language and this is economics site not site on English language - but you will commonly see 'taxes less subsidies' used all across academic literature. It might appear grammatically incorrect as it is part of the jargon, so of course this is not the way how laymen might discuss taxes.


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