Correct, its not a subsidy under your definition. But it is a relative advantage compared to other products (in layman&#x27;s terms this is very close to the meaning of subsidy) .<p>Considering i have a pool of $50 to spend, I can buy more internet access now (or will begin to buy internet access) to the extent that the marginal dollars give the greatest utility over other products (which are taxed).  Ex: imagine a internet plan is taxed such that it is $50 under the old taxed regime and $45 under the new taxed regime.  Under the old regime, internet access purchases had to compete against other choices that cost $50.  Under the new regime internet access will compete against $45 choices. Anyone currently not spending $50 on internet because other $50 dollar choices are better may shift away under the new regime because the $45 internet is a better choice than the still normally priced $50 choice.<p>As well, to the extent that the government spends tax money on anything ISP related, that expenditure is now a greater net subsidy than prior cases where some amount of tax offsets the subsidy (eg, $50 subsidy - $5 tax ==&gt; $45 net subsidy in the old regime becomes $50 subsidy - $0tax ==&gt; $50 net subsidy in the new regime)