That is an excellent analogy, but in this case it is like going from 'the joke is so funny its literally killing me' (as in I'm laughing too hard) to prosecuting the joke-teller for murder. Or possibly if a clown kills someone not prosecuting that clown because "obviously that clown is literally killing someone but literally doesn't mean literally".

There are a range of actions that are appropriate to take when dealing with an unwanted subsidy. If we redefine what 'subsidy' means then the range of appropriate actions changes and we have to talk about what the new actions are. It would be far easier to use the right word, so word and action line up without the need for analogies.