As far as I know, it's just another business expense, which means you deduct it from your profits. Coca Cola paid about 17% in taxes for 2010 [1], so if you squint hard enough I guess you could look at it as a 17% subsidy. But since that's true of any reasonable business expenditure, I don't see it as a significantly distorting incentive.
As far as I know, it's just another business expense, which means you deduct it from your profits. Coca Cola paid about 17% in taxes for 2010 [1], so if you squint hard enough I guess you could look at it as a 17% subsidy. But since that's true of any reasonable business expenditure, I don't see it as a significantly distorting incentive.
[1] http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/F...