Viewing a single comment thread. View all comments

24get t1_j9oyh1z wrote

5% tax rate! Don’t try this at home.

2

thekempss t1_j9p07ud wrote

When I see people posting this I want to facepalm. The tax rate is far higher than that!Income is taxed, not the revenue.

3

Legojoker t1_j9qx3k0 wrote

If I sell burgers, and it costs me roughly $1.00 per burger to purchase the burger ingredients, pay rent on the kitchen/vending location, pay for employees etc, and I sell the burgers for $1.05 each, The thing that gets taxed is the left over profit, ie $0.05. Same principle applies here. Only difference is the progressive tax on corporation profit is virtually non existent (roughly a flat 20% based on the fiscal year). Now, the problems/tax evasion comes from what is considered as part of a business’s overhead. Often, these are exaggerated due to the incentive of being taxed less.

1

Living-Walrus-2215 t1_j9qzpws wrote

You're forgetting the taxes paid on every cent returned to shareholders (ie: the only profit actually generated to the owners of the business), as well as the taxes paid by its owners, employees, clients as a result of the business operating.

Also it's 19%, not 5%.

I agree though, corporate taxes shouldn't be 5%. They should be 0%.

1