It makes plenty of sense for them to not be taxed on their gross revenue.
You’re thinking of this from a mega-corp standpoint when you should be thinking of this from a small business standpoint. Mega-corps really should be forced to abide by different rules, in my opinion.
Let’s imagine you own a bakery shop and it brought in $1,000,000 in revenue this year. You spent $400,000 on raw ingredients, $250,000 on salaries and personnel, and $150,000 on maintenance and equipment…etc
At the end of the year, your business would go bankrupt if it was expected to pay taxes on that million dollars, despite your operating expenditures eating up the grand majority of your year. Similarly, every dollar you spend and every dollar that is spent on wages or salaries is taxed anyways, first or second hand.
That’s why that exists.
It makes sense for small or even large businesses.
Where the whole thing breaks down is when you have mega corporations like we do today. Who have accumulated wealth, power, and influence well beyond the scope of what any of these laws and regulations were meant to handle
It makes plenty of sense for them to not be taxed on their gross revenue.
You’re thinking of this from a mega-corp standpoint when you should be thinking of this from a small business standpoint. Mega-corps really should be forced to abide by different rules, in my opinion.
Let’s imagine you own a bakery shop and it brought in $1,000,000 in revenue this year. You spent $400,000 on raw ingredients, $250,000 on salaries and personnel, and $150,000 on maintenance and equipment…etc
At the end of the year, your business would go bankrupt if it was expected to pay taxes on that million dollars, despite your operating expenditures eating up the grand majority of your year. Similarly, every dollar you spend and every dollar that is spent on wages or salaries is taxed anyways, first or second hand.
That’s why that exists.
It makes sense for small or even large businesses.
Where the whole thing breaks down is when you have mega corporations like we do today. Who have accumulated wealth, power, and influence well beyond the scope of what any of these laws and regulations were meant to handle