JMintzer |
09-18-2021 08:52 AM |
Quote:
Originally Posted by GrumpyOldMan
(Post 2005708)
It is only one of the reasons, not the reason. But, yes, at some point it is advantageous.
|
So tell me, what are some of the other reasons?
Quote:
Please, why do some companies often pay no taxes (I know, but I am interested in your take on it. I hope you won't imply they all don't for the same reason...)
|
Because they deduct their expenses, such is investment in machinery, R&D, etc, which may total more than their profit.
The only real change in the tax laws was that corporations could deduct those expenses when the money was spent, rather than have to do it over time...
In my case, If I bought an new piece of equipment, I had to delay the tax deductions for years...
Now, some companies are given temporary tax by the local municipalities, in order to entice them to come to their town. They know that the tax revenues now and in the future will more than make up for the initial breaks...
Well, most of them knew that... One NY Congress critter, for example, complained so much about a short term tax break for Amazon, when they wanted to build a huge corporate site in their district, providing thousands of jobs, millions in tax revenue, that they simply went elsewhere. They are now building in my neck of the woods, in Northern VA, where office rental and real estate revenues are skyrocketing, adding to the tax coffers with waaay more money than they would have gotten if Amazon never came...
But Bezos has a big boat, so...
|