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There's double taxation all the time. For instance, if I run a store, and I pay sales tax on what I sell, and then I pay income tax on net revenue, the income
by skohan 5y ago
There's double taxation all the time. For instance, if I run a store, and I pay sales tax on what I sell, and then I pay income tax on net revenue, the income from the same transaction is taxed twice.
- nemo44x 5y agoAnd your employees are paid from that taxed income and that is taxed. When the employee buys something with that money that is taxed as is their dwelling via property tax. And the cycle continues. I do wonder how long it takes for a dollar to be 100% taxed as it is exchanged. Transactional taxes certainly give government incentive to stoke consumption as the faster the dollar is exchanging hands the more tax revenue they are collecting.
- indymike 5y agoNope. Employees are an expense. Expenses are subtracted from income before taxes are calculated.
- nemo44x 5y agoYeah sort of. But whatever they are paid restarts the tax machine. I’m not railing against taxes here. Just curious how long it takes the government to completely reconsider each dollar put into circulation.