Reply #43: So your point is that neither should pay taxes? [View All]

[Cleita]

Incidentally, claims would be deducted, just like cost of goods would be deducted from gross income that would yield gross profit. You are talking about taxing gross income not gross profit. After that whatever they pay out in overhead including wages is really up to good or bad management. Do not include wages or other overhead expenses. Wages are one of the problem. Once the CEO and other executive officers take huge salaries it reduces the net income of the company and that shouldn't happen. So under my scheme company A would show a gross profit of $1 billion and company B would show $1,200. in gross profit because they paid out less in claims. This is how it shows up on the trial balance, then expenses are deducted to yield net profit. This enables the corporations to do creative bookkeeping so they pay no taxes. If taxes were 10% on gross profit, company A would pay less than company B because their gross income would be less. I think it's very fair.

This is how our taxes are done. We take deductions and then we are taxed on the income left. No one lets us deduct our living expenses. Corporations shouldn't be allowed to either.