ABSTRACT
This chapter indicates, the term unrequited payments will be reserved for subsidies and welfare payments. Taxes are unrequited payments by the private sector to the government. When paid by the government to the private sector, they are subsidies or welfare payments. Private charity has been found an inadequate source of welfare payments for much the same reason that group-consumption services are not marketable. The economic performance upon which payment of a subsidy is conditioned may be of almost any type, but common examples are production or consumption of a certain good or service, increase in use of a factor of production, and penetration of a particular market, notably the export market. Subsidies are consumer subsidies, factor subsidies, or special-purpose subsidies. Since no subsidy is ever applicable to all goods alike, there is no subsidy analogous to a general sales tax.
