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It really comes to simple process lot of companies operate. They buy some materials, they spend some labour to refine it, sell it, ship it. And what is above al
by Ekaros 2y ago
It really comes to simple process lot of companies operate. They buy some materials, they spend some labour to refine it, sell it, ship it. And what is above all these costs is profit. Taxing them on what they sold for, is not really sensible say with fuel, a low margin product.
Now what can be called cost is very reasonable question. Clearly dividends or stock buybacks should not be costs. And thus such spending should only come from post tax money...
- JumpCrisscross 2y ago> Clearly dividends or stock buybacks should not be costs. And thus such spending should only come from post tax money It does. Dividends and stock buybacks are not tax deductiable [1][2]. [1] https://www.thetaxadviser.com/issues/2022/sep/paying-dividends-tax-planning-strategy.html https://www.thetaxadviser.com/issues/2022/sep/paying-dividen... [2] https://www.grantthornton.com/insights/alerts/tax/2024/flash/irs-issues-robust-guidance-on-stock-buyback-tax https://www.grantthornton.com/insights/alerts/tax/2024/flash...
- arcticbull 2y ago> Taxing them on what they sold for, is not really sensible say with fuel, a low margin product. That's what SF instituted with Prop C -- only to see an exodus of low margin tech companies.