Celebrating Positives (offset of the Gripes Thread)

[old man emu]

The problem with corporate taxation is that so many things can be deducted from gross income as business expenses to reduce taxable income. 

 

However, consider the deduction ACME Industries receives from the cost of employing a person. That money is not really lost to Treasury because the emplyees pays income tax before getting money in the hand. Then from that money, a further 10% is paid because the person purchased goods and services. If the employee squirrels some away it will most likely earn a tad of interest, which jacks up the employee's taxable income. The deduction ACME gets is not really lost to the whole Economy. They say that money is made round to go round, and that is what it does.