Seminar 6: How would tax incentives influence the equity structures of political enterprises, the budgetary bridges, and

the tax state as financial intermediary? People who direct capital to political enterprises do not direct it from their personal accounts, but from the accounts of other people, acquired through taxation. The creation of political enterprises allows the sponsors of those enterprises to leverage their own supply through their share taxation with capital provided by other taxpayers who would not have chosen to invest in the political enterprise. Political enterprises must generate returns for investors or else they would not be supported in the public square. Tax incentives would influence the equity structures of political enterprises because the distribution of money will be different, this means that some enterprises will have more money to invest in other activities than others. Citizens are tax-induced investors, with different preferences, so tax incentives will help some political enterprises but not others. The Budgetary bridge is the connection between one source of revenue and one object of expenditure. But it is not that simple, as the number of enterprises and the number of citizens continue to expand, it quickly becomes impossible to attribute tax changes to changes in support for particular enterprises. Tax incentives will produce more unknowledge for the citizens creating more confusion, they could not discover were the money is going. The standard treatment of public debt in the theory of public finance likewise follows the presumption that the state exist outside the economy and intervenes in it. Yet, public debt within a democratically-organized polity does not represent a liability to some particular entity called the state. The state is not an acting entity but an intermediary that bridges people who have enterprises for which they are seeking support on one side of the budget and people who have the means to support those enterprises on the other side, public debt takes on different character. The tax incentives will be conflictual with this intermediary role which has been assigned to the state.