Re:Amazon in Its Prime: Doubles Profits, Pays $0 in Federal ...
by LanceH on Wednesday February 13, 2019 @02:41PM
(#19156131)
Paying employees to produce benefits many people. Possibly at a much more effective rate than giving it to the government (as they actually produce something in return).
Investing in capital goods and means of production. Again, this has a return that giving to the government does not.
Simple example of what is going on here. Someone buys a plot of land and materials in 2000 for $100000. They build a house and sell it in 2001 for $120000. What should they be taxed on? The "losses" from 2000 get carried over to 2001, and they are taxed on $20k.
In virtually every one of these articles "OMG ABC Corp paid $0 in taxes this year!", the explanation is that losses (investments typically) are being carried forward. This is absolutely normal, expected, and necessary for long term planning and growth.
Investing in capital goods and means of production. Again, this has a return that giving to the government does not.
Simple example of what is going on here. Someone buys a plot of land and materials in 2000 for $100000. They build a house and sell it in 2001 for $120000. What should they be taxed on? The "losses" from 2000 get carried over to 2001, and they are taxed on $20k.
In virtually every one of these articles "OMG ABC Corp paid $0 in taxes this year!", the explanation is that losses (investments typically) are being carried forward. This is absolutely normal, expected, and necessary for long term planning and growth.