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It is a double edge sword. The tax laws that help business fewer taxes help small businesses too. Companies are allowed to carry over losses for five years, and
by sbahr001 8y ago
It is a double edge sword. The tax laws that help business fewer taxes help small businesses too. Companies are allowed to carry over losses for five years, and since a lot of the streaming business operate at a loss, they can subsidize their future. Ideally, this allows you to spend a lot of money to gain growth and then profit from it. Preferably, after you start to profit you pay your taxes, but a lot of these businesses are public companies and have to maximize their stock price or give dividends. Very few tech companies pay dividends so it is all about there stock price. Typically, the stock price is linked to the revenue/profit growth. Apple, for example, took a beating because iPhone sales are normalizing and not growing, over a billion devices sold and Apple is still making record amounts of profit/revenue, and that is still not good enough.
Unfortunately, it is a societal/human/capitalist problem, how do you keep the majority happy? That is typically through expansion, not contraction. Usually, contraction results in limited moral and over time that ends of cause governments and economies to fall.