3 ms·
> the fact that regular people are taxed on their gross income while the rich get to be taxed only on their profits is a big injustice in the first place. In m
by CRConrad 5y ago
> the fact that regular people are taxed on their gross income while the rich get to be taxed only on their profits is a big injustice in the first place.
In many countries (including the two I've lived in as an adult) regular people get to make deductions for stuff like the cost of commuting to work, work clothes or equipment (to the extent that's not supplied by their employer), etc. By "deductions" here I mean, subtracting this money[1] from their pre-tax income and have their income tax calculated on what's left. In effect, getting taxed only on "the profits from work".
Surely even the USA must have some similar thing?
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[1]: Often implemented as a default deduction anyone can make without proof; if your outlies are larger, save the receipts and deduct the actual amount. This general-deduction-amount at least used to be high enough that most people benefited from just checking the box to use it.
- lmm 5y agoYou can deduct costs that are narrowly specific to your job. But for most regular people the biggest costs of working are the rent/mortgage cost of having to live near a centre of employment, and perhaps the cost of a vehicle which they use for commuting, and neither of those is deductible.