Born Free
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bongsaway;1069668741[QUOTE said:let's do away with the word subsidies and call them what they are tax breaks. Dig a hole that produces nothing 100% write off.
Cost of doing business is a write off. All Labor is a write off, supplies, office expenses, pickups, drilling rigs, etc. At the end of each year the company compares cost against revenue. If the revenue is higher than their cost then they have a taxable income. If on the other hand they have more cost than revenue they are losing money. And if they lose to much there is chapter 11 they can file or chapter 7 which is total liquidation. So what your saying no company can right off their cost, then that means all revenue is taxable. Example if a company has revenue of 20 million and they have cost of 20 million they have taxable income of 20 million. So the company has to absorb the cost of doing business plus 10 million in taxes. So in the end the company should have broke even for the year but under your thinking they have to pay an additional 10 million taxes increasing the companies losses.
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