ABSTRACT
Similarly, tariffs that have to be paid by citizens on imported goods or subsidies on them received by citizens are also no more than inter-community transfer payments. There is a caveat to be made if foreigners are involved. If the project in question is financed by an issue of shares on which shareholders receive a dividend, although the amount of tax paid to the home government is, as indicated, a transfer payment, any additional tax paid by foreign shareholders to their own government is obviously not a transfer to nationals. The tax paid by resident foreigners to their own government constitutes a loss to the home economy and must therefore be subtracted in that year from the value of the project’s benefits. When all residents derive some benefit from the introduction of a rail link, a zero increase in the price of a house cannot be taken to mean that the residents derive zero benefit from the rail link.
