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And just like the real person cannot get a write off for things required to live or things that make them more attractive on the market, neither should business
by SkyBelow 7y ago
And just like the real person cannot get a write off for things required to live or things that make them more attractive on the market, neither should businesses. If I have to pay taxes on the income I spent to repaint my house, why shouldn't a business have to pay taxes on the revenue they spent to repaint their building?
- harryh 7y agoBecause of this: https://news.ycombinator.com/item?id=22370387 https://news.ycombinator.com/item?id=22370387
- SkyBelow 7y agoWouldn't the costs be updated to reflect the difference in profit margins. If the tax is 10%, then in cases where the profit margin is razor thin prices would rise by about 10%, but life would otherwise keep on going. If an entire industry would die from such, then doesn't that mean that currently tax payers are subsidizing that industry to keep it alive by having uneven taxes, if the standard of equal taxes is the purposed change?
- harryh 7y agoAre you trying to say that tax payers are subsidizing the entire retail industry? No, that is definitely not the case. Different amounts of value are added at different stages of the product pipeline. These different amounts of value are reflected in different profit margins. Forcing uniformity here via the tax code would be massively distortionary.