Started By
Message
Why do businesses consider taxation an expense?
Posted on 4/12/15 at 3:53 pm
Posted on 4/12/15 at 3:53 pm
Ultimately, all tax money flows to salaries of people that work for the government. When these folks buy things from the businesses, they are basically giving the money back.
Why, then, do businesses assume they are "paying" something in return for nothing?
I would wager that most businesses get back an the amount of money through selling stuff to government workers (teachers, police, etc) that they paid in taxation.
Why, then, do businesses assume they are "paying" something in return for nothing?
I would wager that most businesses get back an the amount of money through selling stuff to government workers (teachers, police, etc) that they paid in taxation.
19
Posted on 4/12/15 at 4:20 pm to HailHailtoMichigan!
Then why not just let them keep it in the first place if it's that simple?
Posted on 4/12/15 at 4:38 pm to HailHailtoMichigan!
quote:
Ultimately, all tax money flows to salaries of people that work for the government.
Incorrect.
Posted on 4/12/15 at 4:39 pm to HailHailtoMichigan!
quote:
Ultimately, all tax money flows to salaries of people that work for the government.
quote:I doubt that. And if you're using that as an argument for why they should be getting taxed (I honestly am not sure exactly what the point of the OP is), then it's a pretty weak argument.
I would wager that most businesses get back an the amount of money through selling stuff to government workers (teachers, police, etc) that they paid in taxation.
Posted on 4/12/15 at 5:25 pm to HailHailtoMichigan!
It's for accounting purposes. They have to pay out X amount to the government, so it's an expense.
Posted on 4/12/15 at 6:24 pm to HailHailtoMichigan!
Dumbest thread you've started.
Posted on 4/12/15 at 6:36 pm to the808bass
While it's dumb, it's not that dumb.
It doesn't all go to govt workers obviously. However, part of it does, and it also goes to contractors who employ folks, who in turn buy shite. Which in turn helps the economy grow.
If you buy into trickle down economic theories, then you kind of have to buy into his point as well.
Still more of it goes to people on welfare so they can buy liquor and lottery tickets, in turn allowing the employees of the liquor and beer corporations earn a living and spend money. Plus don't forget the drug dealers and pimps that get a cut of that welfare money, they spend money too.
The rest of it lines the pockets of these giant corporations, and that is what blows. If all of our tax dollars went to Joe Blow, and the pimps and drug dealers, I think we'd all be ok with that.
But those damn corporations, sucking off the tit, and not paying a corporate tax on it.
frick those guys.
It doesn't all go to govt workers obviously. However, part of it does, and it also goes to contractors who employ folks, who in turn buy shite. Which in turn helps the economy grow.
If you buy into trickle down economic theories, then you kind of have to buy into his point as well.
Still more of it goes to people on welfare so they can buy liquor and lottery tickets, in turn allowing the employees of the liquor and beer corporations earn a living and spend money. Plus don't forget the drug dealers and pimps that get a cut of that welfare money, they spend money too.
The rest of it lines the pockets of these giant corporations, and that is what blows. If all of our tax dollars went to Joe Blow, and the pimps and drug dealers, I think we'd all be ok with that.
But those damn corporations, sucking off the tit, and not paying a corporate tax on it.
frick those guys.
Posted on 4/12/15 at 7:03 pm to Stir of Echoes
The point of accounting is not social or economic theory. It's to track revenue and expenses.
Taxes falls into the latter of these two.
Taxes falls into the latter of these two.
Posted on 4/12/15 at 7:07 pm to the808bass
all tax money goes eventually to worker salaries, whether indirect or direct. When the government builds a road, the cost includes both workers and materials. The workers directly get the tax money. The materials are bought, and the money involved in that transaction eventually goes to the people involved in the material industry.
There is no way around it. Tax money one way or another goes to worker pay
There is no way around it. Tax money one way or another goes to worker pay
Posted on 4/12/15 at 7:08 pm to HailHailtoMichigan!
You should present this to an Accounting periodical. Money in the bank.
Posted on 4/12/15 at 7:12 pm to HailHailtoMichigan!
quote:
Why do businesses consider taxation an expense?
Because after they pay taxes, they have less money than before they pay taxes.
Posted on 4/12/15 at 7:15 pm to HailHailtoMichigan!
quote:
When the government builds a road, the cost includes both workers and materials.
quote:
Tax money one way or another goes to worker pay
Most of it goes to construction company owners
Posted on 4/12/15 at 7:16 pm to deeprig9
quote:
Because after they pay taxes, they have less money than before they pay taxes.
Ding, ding, ding!
I've no idea what point the OP was trying to make.
Posted on 4/12/15 at 7:23 pm to finestfirst79
But they'll get the money back
Posted on 4/12/15 at 7:26 pm to HailHailtoMichigan!
quote:
Why do businesses consider taxation an expense?
So this is what stoned millennials working toward GEDs are pondering these days?
It would be quite amusing if it weren't so horrifying.
Posted on 4/12/15 at 7:38 pm to HailHailtoMichigan!
quote:
But they'll get the money back
Posted on 4/12/15 at 7:41 pm to HailHailtoMichigan!
quote:
But they'll get the money back
That's called revenue.
Then they get taxed on it again. And it will still be an expense.
Posted on 4/12/15 at 7:56 pm to the808bass
Look kids, Big Ben, Parliament 
Posted on 4/12/15 at 8:04 pm to the808bass
quote:
that's called revenue. then they get taxed on it again. And it will still be an expense.
However, they pay their share to the system, and the machine churns on.
They pay their employees, who also pay tax.
Who in turn buy stuff, which hopefully results in profits for a company, which in turn pays tax, and on, and on, and on.
Tax serves a purpose to the economy. A society that expects and demands the services our society/government provides must pay for it.
The problem isn't taxes, it's where the monies from the taxes are spent. Cronyism, lobbyists, and agendas.
That's the problem.
Posted on 4/12/15 at 8:10 pm to Stir of Echoes
I agree. But he's asking an accounting question about an Econ theory.
Page 1 of 7
Popular
Back to top
Follow SECRant for SEC Football News