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Simple, if you receive income that is a royalty from the sale of products you sold to the person who ultimately sold them, it's taxed at 100%.
by badrequest 7y ago
Simple, if you receive income that is a royalty from the sale of products you sold to the person who ultimately sold them, it's taxed at 100%.
- imadethis 7y agoSo no more wholesalers? No more commission for sales reps selling through partners?
- mysterypie 7y agoIf that were the law, then the MLM's simple workaround would be to pay you a recruiting fee based on the success of the people you recruit. If the people you recruit sell a lot, you get a bigger fee because you did a better job at recruiting. I imagine it'll be tough to craft a law to target MLMs because if it's too broad it'll hit many kinds of legitimate business and if too narrow they'll creatively bypass the rules.
- learc83 7y agoThe IRS deals with people trying to exploit loopholes like that all the time. The law isn't a programming language.
- solotronics 7y agoThe companies that make routers sell their products to us this way, through VARs.
- bdcravens 7y agoReselling isn't nefarious; network marketing is.