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Where T<1 is the tax rate, spending X on a write-off allows you to avoid paying X*T in tax. But you still end up with X(1-T) less money in the end.
by sksnxjis 10y ago
Where T<1 is the tax rate, spending X on a write-off allows you to avoid paying X*T in tax. But you still end up with X(1-T) less money in the end.
- denim_chicken 10y agoWhat is your point???
- zo1 10y agoThe point is that they are still paying money. Calling it a "tax write-off" to the layman sounds like they're just doing it to reduce how much they pay in taxes. I.e. It sounds like tax-evasion/fraud.
- Pyxl101 10y agoHis point specifically is that tax write-offs don't reduce how much you have to pay overall. They may even increase it. They just redirect some of it to other purposes such as research instead of paying taxes.