That’s what the “Standard deductible” is on your taxes. Basically “this is what we think it costs to live here for a year, so this money doesn’t count towards your taxes.”
Comment on Data centers get tax breaks. Not you though.
Anivia@feddit.org 9 hours agoIf you’re a “company” you get to offset money coming in with expenses and even in the most honest of systems only pay tax on the difference (i.e. the profits).
Taxing profits instead of revenue is sensible though, otherwise businesses with low profit margins would be impossible to run. Groceries would be twice as expensive since the supermarket would have to increase their profit margin by a huge amount to not go bankrupt
Bytemeister@lemmy.world 2 hours ago
Anivia@feddit.org 2 hours ago
I think you replied to the wrong comment
Bytemeister@lemmy.world 1 hour ago
Eh. In the same line. Close enough.
constant_liability@lemmy.world 3 hours ago
Why do they need a huge profit margin of profit is the money left over after they’ve paid their expenses? And why wouldn’t you want the same system for individuals?
Anivia@feddit.org 3 hours ago
Why do they need a huge profit margin of profit is the money left over after they’ve paid their expenses?
Because if they were taxed on revenue, not profit, they would have a higher tax burden than their profit and go bankrupt
And why wouldn’t you want the same system for individuals?
If you could decuct all your expenses from taxes the only ones paying taxes would be people saving up their money
eestileib@lemmy.blahaj.zone 2 hours ago
Hmm maybe this indicates that basic necessities of life should not be managed through the profit motive.