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You can already show a $0 profit today and pay no income tax, but a business that generates income will always pay sales, payroll and other taxes anyway.
by manigandham 7y ago
You can already show a $0 profit today and pay no income tax, but a business that generates income will always pay sales, payroll and other taxes anyway.
- dnautics 7y agoNo, you'd have to show $0 income (ignoring for a moment the low 0% tax bracket). So, very much negative profit, unless you're not paying rent, fuel for your car, food, not to mention taxes like property taxes, sales taxes, etc.
- manigandham 7y agoCorporate taxes in the US are based on business profits. $0 profit = $0 net income (gross income minus expenses) => $0 income tax. There's no such thing as a negative profit. That's called a loss.
- dnautics 7y agoby my reading the parent was comparing personal income tax policy with corporate income tax policy, and as a person you can take a loss and still be taxed.