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Economic Definition of subsidy. Offline Version: PDF. Term subsidy Definition: A payment from government to individuals or businesses without any expectations of production. The best way of thinking about a subsidy is as a negative tax.
Trickle-down economics, also referred to as trickle-down theory, is an economic theory that advocates reducing taxes on businesses and the wealthy in society as a means to stimulate business investment in the short term and benefit society at large in the long term. It is a form of laissez-faire capitalism in general and more specifically supply-side economics. Whereas general supply-side theory favors lowering taxes overall, trickle-down theory more specifically targets taxes on the upper end o