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re: Why do businesses consider taxation an expense?
Posted on 4/12/15 at 10:05 pm to the808bass
Posted on 4/12/15 at 10:05 pm to the808bass
quote:You think government salaried employees spend all their income at one place?
I'm just going to quote this and leave it there as a monument to your epic stupidity.
How exactly does it work out otherwise? If the money isn't going back to the firms, where is it going?
1
Posted on 4/12/15 at 10:07 pm to Evolved Simian
quote:GOVERNMENT EMPLOYEES BUYING STUFF GIVES BUSINESS OWNERS MORE REVENUE.
you assume that business owners are "stupid" for not wanting less net income?
do you not understand that? When a firm pays 100 dollars in taxes (call it an expense, whatever) it gets back that 100 dollars in the form of revenue because employees of the state are buying stuff.
Posted on 4/12/15 at 10:10 pm to HailHailtoMichigan!
quote:
How exactly does it work out otherwise? If the money isn't going back to the firms, where is it going?
It can go anywhere. It certainly isn't returning on a 1:1 basis to the company.
Posted on 4/12/15 at 10:11 pm to HailHailtoMichigan!
quote:
GOVERNMENT EMPLOYEES BUYING STUFF GIVES BUSINESS OWNERS MORE REVENUE.
ASSUMING ALL TAX REVENUES GO TO GOVERNMENT EMPLOYEES SALARIES, AND THAT GOVERNMENT EMPLOYEES SPEND EVERY PENNY THEY MAKE WITHOUT SAVING ANY OF IT.
ARE
YOU
frickING
KIDDING
ME
?
Posted on 4/12/15 at 10:14 pm to the808bass
quote:Yes, it is, if you average everything. Some companies probably get 1.20 back on every dollar, some .8 on every dollar.
It certainly isn't returning on a 1:1 basis to the company.
The point is that it gets back to the firm.
Posted on 4/12/15 at 10:14 pm to HailHailtoMichigan!
Some get $0.10. And then have to pay taxes on that, too.
I hope you're high.
I hope you're high.
Posted on 4/12/15 at 10:17 pm to HailHailtoMichigan!
quote:
Where does government money end up besides in pockets, eventually?
So all money ultimately ends up in the hands of people? Brilliant insight. Gold star for you.
Posted on 4/12/15 at 10:20 pm to the808bass
quote:
I don't think you have any idea what kind of question it was.
True. He should stop posting, he doesn't know what he is talking about.
Posted on 4/12/15 at 10:21 pm to the808bass
quote:Businesses aren't taxed on revenue.
Some get $0.10. And then have to pay taxes on that, too.
Also, if you pay 100 dollars in taxes and only get 10 cents back, then you are offering a shitty product anyway and are probably about to go out of business.
Posted on 4/12/15 at 10:21 pm to kywildcatfanone
quote:You guys don't think government employees spend money and add revenue to tax-paying firms.
He should stop posting, he doesn't know what he is talking about.
Posted on 4/12/15 at 10:33 pm to HailHailtoMichigan!
quote:
Also, if you pay 100 dollars in taxes and only get 10 cents back, then you are offering a shitty product anyway and are probably about to go out of business.
Or you're offering a product welfare people or government employees don't regularly buy.
Posted on 4/12/15 at 10:37 pm to the808bass
quote:But it is a chain event. Let's take your welfare example, and consider a liquor store owner as the tax payer in our hypothetical.
Or you're offering a product welfare people or government employees don't regularly buy.
Assuming there is a law that prevents welfare recipients from buying things at liquor stores, the recipient will go to a normal grocery store. That owner of the grocery store will use that revenue, potentially, to go buy something at the liquor store.
Posted on 4/12/15 at 11:03 pm to HailHailtoMichigan!
Look dude, to answer your question.
Do you personally consider taxation an expense? Probably not, because it is taken out of your paycheck, if you never see it, you don't consider it.
This is the same idea behind saving as well. Save before you see it. You'll never miss it.
Anyway, unfortunately for most if not all of these corporations, they don't get that convience, on top of that they don't really every know what their tax bill will be.
Therefore, a smart corporation operates, in the very least, upon a state that will yield zero state tax. That's a start. However, given the current tax laws, let me remove my liberal hat here, a corporation that deals towards bottom lines cannot survive in the current taxation state. Given profits, salaries, health care, unemployment insurance, and finally federal tax.
Profits will always own the day, and giving that a U.S. corporate entity has to pay all of these things on top of a federal tax is why most corporations seek shelter overseas.
I'm all for a strong America, and I'm also for strong American corporations. It's what has made this country what it is. Give me a government that will straighten all of this out, and I'll show you an America that will thrive for another 240 years.
Give me people that piss and moan about the state of affairs, and we've got 50 years. Max.
Let's fix it.
Do you personally consider taxation an expense? Probably not, because it is taken out of your paycheck, if you never see it, you don't consider it.
This is the same idea behind saving as well. Save before you see it. You'll never miss it.
Anyway, unfortunately for most if not all of these corporations, they don't get that convience, on top of that they don't really every know what their tax bill will be.
Therefore, a smart corporation operates, in the very least, upon a state that will yield zero state tax. That's a start. However, given the current tax laws, let me remove my liberal hat here, a corporation that deals towards bottom lines cannot survive in the current taxation state. Given profits, salaries, health care, unemployment insurance, and finally federal tax.
Profits will always own the day, and giving that a U.S. corporate entity has to pay all of these things on top of a federal tax is why most corporations seek shelter overseas.
I'm all for a strong America, and I'm also for strong American corporations. It's what has made this country what it is. Give me a government that will straighten all of this out, and I'll show you an America that will thrive for another 240 years.
Give me people that piss and moan about the state of affairs, and we've got 50 years. Max.
Let's fix it.
This post was edited on 4/12/15 at 11:06 pm
Posted on 4/13/15 at 6:12 am to HailHailtoMichigan!
quote:
You guys don't think government employees spend money and add revenue to tax-paying firms.
You are laughing at us? You are saying all government employees spend 100% of their income, and that all taxes go to government salaries, are you are laughing at us?
Posted on 4/13/15 at 6:38 am to Duke
quote:
It's for accounting purposes. They have to pay out X amount to the government, so it's an expense.
Posted on 4/13/15 at 9:33 am to HailHailtoMichigan!
Glad you cleared this up for me OP. And to think, I was feeling really bitter about draining my bank account to pay the IRS. I'll just kick back and wait for those government employees to buy what I'm selling. I wish I lived closer to a place with lots of government employees.
Posted on 4/13/15 at 9:42 am to Stir of Echoes
quote:
However, given the current tax laws, let me remove my liberal hat here, a corporation that deals towards bottom lines cannot survive in the current taxation state. Given profits, salaries, health care, unemployment insurance, and finally federal tax.
That's not to mention the licenses and other fees they have to pay out to local, state, and federal governments. Really has an impact on someone trying to start a business. Right now you have our youth with tons of debt from school and starting a business is an expensive proposition with all the fees and bureaucratic bullshite it takes to even open the doors. Really starves the oxygen from what should be a dynamic business climate. Really goes to serve the interests of the big established players, who aren't hungry and trying to innovate.
quote:
I'm all for a strong America, and I'm also for strong American corporations. It's what has made this country what it is.
Agreed. Setting up a better climate on the small business end is of vital importance as traditional jobs will continue to be lost overseas and to robots.
Posted on 4/13/15 at 10:20 am to HailHailtoMichigan!
All taxes are a price of doing business. As such they are figured in the total price of goods or services. To this is added a thing called profit.
Sales taxes or vat taxes are added by the government, not the business, therefore business has no control on these and are not a part of the business expenses.
Sales taxes or vat taxes are added by the government, not the business, therefore business has no control on these and are not a part of the business expenses.
Posted on 4/13/15 at 10:28 am to HailHailtoMichigan!
quote:
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 4/13/15 at 10:35 am to Rebelgator
He's missing the point that could actually make an argument here. It's not what public employees buy, but it's the value they add to the overall economy. Police offer protection from thieves and maintain social stability. Teachers educate the future workforce who will get jobs and buy things with their wages. Money to infrastructure spending improves the overall business environment.
His argument should be the added value of those tax dollars make them more money than the cost of taxation.
His argument should be the added value of those tax dollars make them more money than the cost of taxation.
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