To put the business example into how it works for the rest of us: If i make a thousand dollars a year and spend $900 on housing, food, clothes, gas and a little getaway, I should only be taxed on $100 of net income. Why? I only profited $100. The 900 were expenses, tax the people who end up with the money, don't tax the person who didn't manage to save it. Every dollar was given to some business - surely those businesses profited or otherwise put that money to someone else.

Right now a dollar can change hands a hundred times in a year and get taxed with each exchange even if it's only in an intermediary's hand for a moment. Why not? If corporations are people, why can't a human be a corporation?

imo we do things so backwards. Things like stock options when earned should be treated as literal income. Immediately throw all the wealthy executives into the highest tax bracket since they are making that much money, factually. Money in stocks may not be spent yet, just like money sitting in a savings account may not be spent yet. At the end of the day it's still money.

Oh... and 401k contributions shouldn't have a higher employer contribution cap. Why I can only put in 20k or so while businesses can add 50k to the execs 401ks on top of their 20k is absolutely maddening.

I know most of what i'm saying is ignoring a myriad of factors but the whole system is rigged against those who don't have shitloads of money already and can't take advantage of all the schemes the wealthy have invented over the years.

Anyway, I know all i'm saying is a pipe dream and will never happen. We just have to go back to eating our shit sandwich in the back of the bus.

[–] LovableSidekick@lemmy.world 1 points 4 days ago (1 children)

In the US tax system, which is the only one I'm familiar with, instead of accounting for survival expenses the way businesses do, individuals get the Standard Deduction, with additional allowances for dependents. This is a substitute for having to account for every penny spent on food, rent, etc. For example this year the Standard Deduction is $15,000. Seems a little low to me, and I don't know how they come up with that number - maybe it's what they define as the "poverty line" I dunno. But that's the concept. If you live better than you would on that much, the additional is your "little getaway" you don't get to call an expense. Now I'm not disagreeing with you saying the system is rigged in favor of the rich, just clarifying that one particular point.

[–] Critical_Thinker@lemm.ee 1 points 4 days ago* (last edited 4 days ago) (1 children)

the standard deduction doesn't work on a national level. The cost to survive in boston is not the same as rural louisiana.

Everything is designed to maximize taxes on the poor and working class, especially the new tariff tax plan.

That being said... the 'little getaway' is easily classified as a business expense in a business. "I traveled to meet with a client" - maybe my getaway was to interview with a potential employer. I can make up bullshit all day and nobody can prove it one way or another.

I've personally seen multiple CFOs do illegal shit like embezzlement. I've seen internal audit things swept under the rug like fucking crazy.

On the small business side there's all the blue collar workers gladly taking cash without receipts and never recording it as income. Props up the 'business' owners, hurts the working class unless they do side gigs for cash. It's all broken.

[–] LovableSidekick@lemmy.world 1 points 4 days ago

Hence my last sentence, which probably should have been the first since it's freaking social media.