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I understand the system, I just want to be clear how broken this is. Both are windfalls, one gets taxed immediately, the other gets taxed if they don't use up
by spaceribs 5y ago
I understand the system, I just want to be clear how broken this is.
Both are windfalls, one gets taxed immediately, the other gets taxed if they don't use up all their profits reinvesting in themselves by the end of the year.
- tick_tock_tick 5y agoI don't see how you can think this is broken. Think about the implications if it wasn't like this. Bankruptcy would be rampant and R&D investment would be impossible for everyone but the largest companies.
- spaceribs 5y agoI disagree, as these companies already calculate how much they need to spend to prevent having to pay taxes.
- robertlagrant 5y agoThat doesn't matter. They're still spending it, rather than keeping it as profit.
- Nasrudith 5y agoWell yes, governments tend to like their industrial bases growing and are willing to wait for bigger gains over a longer time period. That isn't broken it is by design.
- robertlagrant 5y agoHow are they windfalls? For whom?