Democrats Offer Lesson in Misleading on Taxes - Tech Support Forums

Chuckiechan · August 19th, 2008, 12:19 AM

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First, while it is true that 60 percent to 70 percent of companies in the study paid no tax in a given year, there was a big qualification. The study focused on an Internal Revenue Service tax database that included millions and millions of companies. The vast majority of firms in the study were tiny mom- and-pop enterprises.
Why did the tiny mom-and-pop enterprises pay no taxes? Because they didn't make any money! The study reported that was the reason about 80 percent of the firms in the sample avoided taxes in a given year. How terrible of them.

** Note: When Rob tried to merge the threads, something when astray and they both got deleted. So for your reading pleasure, I've resurrected the thread.

The Real Bingo · August 19th, 2008, 12:26 AM

It's a good thing to know...I learned in BS that profits are taxed; not sales. Not sure if that's common knowledge or not. Probably not for congressional Democrats...but maybe they just conveniently omit the facts.

Pexster · August 19th, 2008, 01:15 AM

I don't think anyone omitted facts. The stories I read about the study clearly pointed out this important distinction.

Chuckiechan · August 19th, 2008, 02:45 AM

Democrats love jobs but hate business.

How does Obama plan to take the profits of the oil companies and give it away to everyone at $ 1000 a pop?

Does this seem odd to anyone? I doubt it's legal to single out one industry and then steal it's money from the shareholders.

The Real Bingo · August 19th, 2008, 11:51 AM

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Originally Posted by Pexster

I don't think anyone omitted facts. The stories I read about the study clearly pointed out this important distinction.

I'm sure the study did, but the people in congress - we all know which party they belong to - who hate business don't really consider the fact. I mean, why would all the blowhards complain about the 2/3rds of corporations not paying taxes when they already know the those 2/3rds didn't turn a profit? Did they know they didn't turn a profit, or do they assume businesses are taxed on their revenues?

Pexster · August 19th, 2008, 12:12 PM

I don't know of a party that "hates business." That's just more demagoguery. Your conclusion that all of the corporations that didn't pay taxes did not return a profit is completely false. Finally, it's common knowledge that taxes are not based on revenues.

The Real Bingo · August 19th, 2008, 12:24 PM

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Originally Posted by Pexster

I don't know of a party that "hates business."

Well, then you must not be aware of the Democrat party.

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Your conclusion that all of the corporations that didn't pay taxes did not return a profit is completely false.

As I said in the other thread that disappeared, cash businesses can hide profits...we all know that.

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Finally, it's common knowledge that taxes are not based on revenues.

Then what's all the hubbub, bub?

Chuckiechan · August 19th, 2008, 10:45 PM

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Originally Posted by Some Idiot

Your conclusion that all of the corporations that didn't pay taxes did not return a profit is completely false.

Excuse me, but when you file income taxes, your end of line NET profits after expenses are what an income tax form is used for - to calculate your tax.

You show me untaxed profits, I'll show you gross profit. Net is taxable, period. You may offset some taxes with tax credits, but is part of the tax calculation.

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cash businesses can hide profits...we all know that.

Not as much as before. You have cost of goods, plus rent, plus labor (or owner's draw). Each business type has an expected margin. Fall below it too often or too much, and you'll be audited.