Paying employees to produce benefits many people. Possibly at a much more effective rate than giving it to the government (as they actually produce something i

Paying employees to produce benefits many people. Possibly at a much more effective rate than giving it to the government (as they actually produce something in return). Investing in capital goods and means of production. Again, this has a return that giving to the government does not. Simple example of what is going on here. Someone buys a plot of land and materials in 2000 for $100000. They build a house and sell it in 2001 for $120000. What should they be taxed on? The "losses" from 2000 get carried over to 2001, and they are taxed on $20k. In virtually every one of these articles "OMG ABC Corp paid $0 in taxes this year!", the explanation is that losses (investments typically) are being carried forward. This is absolutely normal, expected, and necessary for long term planning and growth.