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Originally Posted by poboys 94  I'm curious, does a business get taxed on what you profit, or do they tax you on what it grosses in before expenses? I don't know much about the way a business gets taxed, so I hope you can answer  It just seems wrong to tax the crap out of people trying to make a go of it for themselves, the big oil and corporations can afford to having their tax status reverted back to the way the Clintons administration might have had it, but someone like you should not be in the same boat as them, if that's the way it is. |
The actual amount we're taxed on is still net profit, not gross intake, but it would still be completely wrong to raise taxes based on gross intake. The percent of profit to gross income is a very low number. A lot of restaurants only profit 5 to 10 percent. For me, it will also be a low percentage because some (maybe all, I haven't looked into all the companies) insurance companies will allow the policyholders' payments go into my account, then they make regular withdrawals from my bank account to collect the premiums.
And I also agree that hiking taxes on big corporations will only raise the consumer's cost. Since there's no legal monopoly the gov't can't (and shouldn't) do jack about what the oil companies charge.
On a third note, not competing with the private market is not a good reason for government to be ineffective with the money we give them. If the free market is offering us services, the government should stay out of it. In my opinion that would include charity, health insurance, and education. I realize there are some families without any tax liability, and would have to be paying more out-of-pocket to purchase a private education. I'd have no problem with government-funded "scholarships" to private schools, the same as what they already do with college scholarships. However, with the tax savings we'd all realize, community leaders ought to be able to fund those scholarships w/out any problem, and by giving much less money than what we give gov't for education.