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The same outlets that publish those headlines also publish ones like “Company XYZ made billions in revenue and paid zero in taxes”, completely glossing over pay

by koolba 5y ago

The same outlets that publish those headlines also publish ones like “Company XYZ made billions in revenue and paid zero in taxes”, completely glossing over payroll tax, deferred losses, and credits for capital investment.

taneq 5y ago
This one makes me so mad, because it's always some ignoramus comparing taxes with revenue and ignoring the fact that if the company paid zero taxes then most or all of that revenue was ploughed back into the local economy. Jobs, construction, equipment, etc. all mean that cash lands on everyone, and then people swallow the spin and complain about it. Now, if they were making billions in profit and paying zero taxes then that's different.
- ansible 5y ago
  > Now, if they were making billions in profit and paying zero taxes then that's different. Some companies are, and are very clever in hiding that (offshoring profits, etc.). Other companies (and their boards apparently) are content with "merely" overcompensating their executives, who then have their own teams of accountants and lawyers to avoid paying taxes. The companies themselves aren't running much profit, on the promise of a better stock price and future growth. In some cases this is legitimate because they are indeed investing in their own infrastructure or intellectual property.
- perryizgr8 5y ago
  > Now, if they were making billions in profit and paying zero taxes then that's different. Why is that different? Profits will be used to innovate or be invested in future infrastructure, at which time they will be taxed.
bjourne 5y ago
Payroll tax is paid by employers on behalf of their employees. That is, it is the employees money that pays the tax - not the employers. VAT works similarly.
- koolba 5y ago
  There’s two halves to payroll tax. One paid by the employee that is deducted from their paycheck. The other is paid by the employer and counts as an expense against revenue. Employees do not get to deduct the second half from their taxes. It’s considered to be paid by their employers. (Unless you’re self employed.)
  - metabagel 5y ago
    Nonetheless, it’s effectively part of the employee compensation. It goes away if the employee does.

by koolba 5y ago

taneq 5y ago

This one makes me so mad, because it's always some ignoramus comparing taxes with revenue and ignoring the fact that if the company paid zero taxes then most or all of that revenue was ploughed back into the local economy. Jobs, construction, equipment, etc. all mean that cash lands on everyone, and then people swallow the spin and complain about it. Now, if they were making billions in profit and paying zero taxes then that's different.

ansible 5y ago
> Now, if they were making billions in profit and paying zero taxes then that's different. Some companies are, and are very clever in hiding that (offshoring profits, etc.). Other companies (and their boards apparently) are content with "merely" overcompensating their executives, who then have their own teams of accountants and lawyers to avoid paying taxes. The companies themselves aren't running much profit, on the promise of a better stock price and future growth. In some cases this is legitimate because they are indeed investing in their own infrastructure or intellectual property.
perryizgr8 5y ago
> Now, if they were making billions in profit and paying zero taxes then that's different. Why is that different? Profits will be used to innovate or be invested in future infrastructure, at which time they will be taxed.

bjourne 5y ago

Payroll tax is paid by employers on behalf of their employees. That is, it is the employees money that pays the tax - not the employers. VAT works similarly.

koolba 5y ago
There’s two halves to payroll tax. One paid by the employee that is deducted from their paycheck. The other is paid by the employer and counts as an expense against revenue. Employees do not get to deduct the second half from their taxes. It’s considered to be paid by their employers. (Unless you’re self employed.)
- metabagel 5y ago
  Nonetheless, it’s effectively part of the employee compensation. It goes away if the employee does.