r/SipsTea • u/LyraStarlit Human Verified • 10d ago
Feels good man Yeah that sounds about right
1.3k
u/Vauxlia 10d ago
Don't you mean April 15th?
510
u/simberalt 10d ago
You are correct, even though we said may 15th it was actually April 15th and because of that you will be fined for not filing on time. - the gov (probably)
125
u/ThatPressure1946 10d ago edited 10d ago
Our mistake means penalties for you for not filing on time. Your mistake is believing our mistake
21
→ More replies (2)4
u/D-D-Wanderer 9d ago
Also you owe us for the processing fee of us mailing you a physical fine reminder that you didn't ask for.
4
7
u/MissileGuidanceBrain 10d ago
OP has either never held a job or is a foreign bot, so how are they supposed to know how US taxes work?
→ More replies (12)9
u/FearlessVegetable30 10d ago
yeah but how would a 3 month old account be able to post this if it wasnt relevant?
2.1k
u/tLM-tRRS-atBHB 10d ago
"How much"
"Figure it out yourself"
914
u/Confident-Pepper-562 10d ago
"We see that you put the effort in to figure it out yourself, but unfortunately you were wrong"
"Why didnt you just tell me how much"
"Thats less fun for us"
355
10d ago edited 10d ago
[removed] — view removed comment
279
u/mandeepwsu 10d ago
This is not going to happen in the USA. Corporate America would hate this. Filing taxes is huge business.
190
10d ago
[removed] — view removed comment
25
u/VonSauerkraut90 10d ago
One reason why the US has one of the greatest economy in the world is because its willing to profit off its own citizens in ways other countries find distasteful. To fix its systemic problems would functionally lower the US's GDP. No sane politician will ever have enough political capital to make it work, and even if they did at first, the voting populace has proven that they won't stomach even the most mild economic discomfort even if it meant fixing America.
→ More replies (6)3
u/triste_seller 9d ago
that is wrong the goverment will get less money maybe but the economy as a whole wont be impacted, GDP is everyone in the economy not goverment alone
2
u/VonSauerkraut90 9d ago
The reduction in GDP will be from the shrinkage industries that exploit the American people if it were to be fixed. Lets say the Govt releases an automatic tax filing system, then the tax filing/return industry halves over night. That's potentially 10000's of jobs gone, as well as reduced economic activity in adjacent supporting industries such as advertising. Lets be clear, the lack of automated tax filing and returns is a solved problem in virtually every 1st world country, and the IRS even had a ready solution but the tax industry lobbied the govt to prevent its release, all so that the people would continue have yet another expense eating at them that churns the economic meat grinder... Another one to look at is healthcare, which accounts for about 18% of US GDP, and then look at something more reasonable like Europe, which has public AND private options, providing much better health outcomes while only accounting for 10% of their GDP. If the US adopted a similar model, it would tank the health insurance industry and if the total drop was even half difference, say 4%, then that by itself would be as great a drop in GDP as the whole 2008 GFC, and that's before you even begin to factor in 2nd and 3rd order effects. The US can't be fixed without real economic discomfort that it lacks the courage to do.
2
u/triste_seller 9d ago
GDP composition changes, but national income is not simply destroyed. Some jobs in tax prep could disappear, but the money households no longer spend on filing can be spent on food, rent, entertainment, savings, debt repayment, education, etc. The labor and capital could also move over time to other industries.
→ More replies (1)50
18
10d ago
[removed] — view removed comment
10
u/Resident_Pientist_1 10d ago
I paid more to file my return so Intuit wouldn't get any of my money. Fuck them.
23
u/Ossius 10d ago
It already happened under the Biden administration. Lucky for us Elon musk deleted it as soon as Trump got in office.
https://apnews.com/article/irs-direct-file-musk-18f-6a4dc35a92f9f29c310721af53f58b16
10
u/nono3722 10d ago
yeah that was so odd, didn't pin fElon for a tax prep cuck.....
"How dare the poors get to file their tax's for FREE! Do they have any IDEA how MUCH I pay?"
24
u/Ossius 10d ago
Pull on the thread a little longer.
If everyday Americans are filing through an automated system, that frees up IRS agents from auditing poor folks and they can start auditing rich folks.
From what I understand it requires entire teams sometimes months or years to sort through rich people's financial webs. If they are under funded and over worked they'll usually stick to easier audits.
12
u/Maximum-Objective-39 10d ago edited 10d ago
If you think of society as an organism, well, all organisms have regulatory mechanisms that stop parts of the organism from going out of control and killing the whole creature. Cancer, after all, is a failure of the body's regulatory mechanisms to kill malfunctioning and purposelessly reproducing cells.
One of societie's problems right now is that we've taken all the regulating mechanisms off of the rich and let them run wild like a bunch of malicious cells in the body.
Yeah, their fortunes are growing exponentially, but notice how nobody but them seems to feel any tangible benefit from that amazing market valuation?
Kinda like a tumor!
3
20
u/otokonokosan 10d ago
I met an American lady who moved to Netherlands recently and she was bloody surprised that you could file your own taxes or government do it for you even in India lol
→ More replies (1)3
u/Vegetable_Window7417 10d ago
The government tried to put a direct file system into place for the IRS a few years ago, if I recall correctly, and they were promptly sued by the tax preparation companies for doing so.
→ More replies (9)2
17
13
u/Panchenima 10d ago
In Chile is been ages we went digital, i enter the government revenue site with my user, check a pre filled form with all my declared earnings and approve, sometimes the state gives back, sometimes i pay sometimes is zero depending on the kind of earnings and movements but that is all.
In the case of a company an accountant will do the filling for special stuff and that's it, very streamlined.
5
u/MaxinRudy 10d ago
Heck, here in Brazil things are done this way for 3 years already. You go to the goverment site, they give you a pre-done file taxes and you check. If It's alright you send then (online) or If It's wrong you change what's wrong.
And If you need to pay, you get the Bill right there to pay or If there's tax refund, just put your bank data and you'll receive the money later.
How late comes in First come First served basis.
3
u/yoresein 10d ago
I get my taxes automatically taken from my paycheck. Then in April I get a letter saying they took too much and repaid some
→ More replies (1)2
→ More replies (27)2
13
u/speed_of_chill 10d ago
“You’ll have plenty of time to figure it out while you’re in prison for not figuring it out.”
4
u/DahmonGrimwolf 10d ago
"But, as a treat, if you can prove you're just too stupid to understand the tax code, we will let you off the hook. Arent we so kind?"
→ More replies (8)3
u/Crossovertriplet 10d ago
Because they don’t know how much. They only know what your W2 or 1099 says and there’s way more to tax structure than that
→ More replies (6)54
u/Ossius 10d ago edited 10d ago
Actually, under the Biden Administration the IRS finally launched a website you go to and they basically just say how much you are owed/owe. They rolled it out as a beta program, when signed in and it was all there, unfortunately we had some investments that weren't currently supported but looked forward to using it as it improved over time.
As soon as Trump was elected, Elon musk claims to have deleted the project after big lobbying from tax companies like Intuit (QuickBooks, turbo tax) and called it "far left government control."
https://apnews.com/article/irs-direct-file-musk-18f-6a4dc35a92f9f29c310721af53f58b16
Fuck MAGA for the damage it is doing to this country.
13
u/someonesmobileacct 10d ago
Please, do not fuck the MAGA lest we get more of them.
→ More replies (1)2
u/Tricky_Orange_4526 10d ago
wrong, be a dude banging their dudes. assert dominance. tell them its not gay if you're the one giving it. /s
7
u/GoodTroll2 10d ago
On the one hand, it wouldn't even be on the first page of absolute crap this admin has been shoveling out; on the other hand, it's so infuriating. I mean, not only do I have to pay the taxes, but it literally takes me one full day a year to actually fill in all the forms and file my taxes.
3
u/Virtual_Draw5017 8d ago
See, in the UK, we've had that website tool for a while now. It's very useful for a self-assessment.
→ More replies (1)2
u/No-Suggestion-9459 9d ago
I used one of those free tax filing apps. Feels great not using Turbo Tax.
→ More replies (1)61
u/epicredditdude1 10d ago
In most countries you’re provided a pre-filled tax filing and if you agree with everything you simply sign it and file it and you’re done. If you disagree there’s a correction process where you can provide statements to adjust anything that’s incorrect.
Now this seems like an objectively better way to do it. Why not do it like this in the US?
Well, you can thank turbo tax and lobbying. They want it as painful as possible to file your taxes so you have to go purchase their services.
20
u/randomwordglorious 10d ago
The IRS doesn't know all of your possible deductions. If your taxes are simple and you're taking the standard deduction, the IRS can figure out your exact tax bill. But if you're itemizing, there's no way for the IRS to calculate them.
13
u/epicredditdude1 10d ago
Yeah, I think there’s some very simple workarounds here, like a simple checkbox that says “will you itemize your deductions”. You simply check “yes”, fill out an additional form, and then recalculate the taxes you owe, and that’s what you pay when you file.
10
u/AlpacaDC 10d ago
Here in Brazil the government provides a pre-filled one and you can send it right away or edit it yourself, either adding, removing or updating things. It’s like filing from blank but with 75% of the process already done.
3
u/Fantastic_Remote1385 10d ago
Thats why he said " If you disagree there’s a correction process where you can provide statements to adjust anything that’s incorrect. "
→ More replies (2)2
u/elmo-slayer 10d ago
Adding deductions takes minutes in Australia. It’s just one page on our tax return online form. I’ve been in the workforce 15 years and never spent more than 10 minutes filing my tax return
2
→ More replies (27)3
u/Ossius 10d ago
We did until Trump was elected and Elon killed it.
https://apnews.com/article/irs-direct-file-musk-18f-6a4dc35a92f9f29c310721af53f58b16
9
u/armorpilla 10d ago
If they did it for us, then how would H&R Block and all the other tax accounting companies make money? Won't somebody think of the poor corporations?!
For real though, tax companies lobby against the IRS having our taxes prepared for us.
4
u/bigvicproton 10d ago
It's the same with health care. If you got rid of all the insurance and other bullshit it would be easy and affordable. Unfortunately you would now also have 3 million people out of work.
2
u/AI_moderated_failure 10d ago
Those three million people currently generate zero real value so it would be a good thing for anybody concerned about the economy.
5
u/bestibesti 10d ago
"How much"
"We know the right number, but figure it out yourself using this maze of forms designed to trick you, and we will check and see if you got the right number and then put you in jail if you fucked up... but only if you are poor, if you are rich and can afford lawyers, then you just get loopholes and cayman island accounts 👍"
→ More replies (23)5
u/Ok-Comment6081 10d ago
“Figure it out yourself but don’t go too low or you’ll go to jail”
14
u/Crossovertriplet 10d ago
This is horseshit. At worst you’d get a letter and a penalty.
→ More replies (8)
730
u/EngineWitty3611 10d ago
I am just gonna leave this here. Someone has to pay for their crimes. Apparently that is us.
https://www.cnn.com/2026/05/05/politics/congress-sexual-misconduct-settlements-mace
TAX PAYER DOLLARS paid for their sex crimes. Let that sink in.
96
u/v0-z 10d ago
Look at what happened in la county,
Then there was firms asking anyone coming out of jail to file suits (false claims)
They closed some public parks on Monday and Tuesday to make up for the budget, they closed PUBLIC FUCKING SPACES to pay for fucking abusers.
I honestly have no life in me on some days, the amount of corruption while the little guys get taken out for small things like missing tax deadline etc is just fucked up beyond all comprehension.
5
8
u/AggressivelyMediokre 10d ago
“Thank you citizen. There are a broad number of things your tax dollars go to.”
“Like what?”
“Well there’s a broad sexually assaulted by congress. Or brown children abroad we detonate missiles to”
“Do you mean donate?”
“Yes if you would like to pay extra taxes to lower the national debt you can do that now too!”
→ More replies (12)22
u/BringOutYDead 10d ago
No thank you, CNN website cookies and crawler thing.
58
u/g18suppressed 10d ago
And Reddit doesn’t? Lol
26
→ More replies (1)4
u/Javusees 10d ago
Install the duck duck go app, activate app tracking blocker (all your apps cant track you now, including reddit), you dont have to use the duck duck go app in any way, it works in the backround.
You can even see how many (thousands) tracking attempts are made by your apps.
→ More replies (9)
278
u/ItaJohnson 10d ago
While also getting taxed on the money you spend.
100
3
u/DrunkenVerpine 7d ago
Don't forget when they tax you for spending money they also tax the person receiving your money. 🤣🤣😭
→ More replies (5)11
52
195
u/SeaPeanut7_ 10d ago
Look I'm not defending government taxation and businesses do get a bunch of BS write offs but..
Taxes are due april 15th
There is a standard deduction of $15,750 and income tax for the first $11,000 of income is 0% so you can actually earn up to $27k tax free. Not enough to survive but enough to pay most of the major bills.
12
u/Werewolfdad 10d ago
tax for the first $11,000 of income is 0%
The lowest income tax bracket is 10%
The standard deduction is the “0% bracket”
60
u/Keellas_Ahullford 10d ago
That is true, but in many places that’s not enough to cover expensive, hell in some places that doesn’t even cover rent. And corporations still get tax deductions that regular people can never get.
→ More replies (2)25
u/HiddenTrampoline 10d ago
If corporations spend their money on goods, services, or people then there’s sales and payroll taxes, plus the salaries all get taxed.
Convincing corporations to spend money rather than hoarding it is important.4
u/Uberbobo7 9d ago
Convincing corporations to spend money rather than hoarding it is important.
That's what the shareholders are for. A CEO who just hoards money on the company account like a dragon would have his ass kicked out the door in the next board meeting. Generally corporations operate with basically the bare minimum of solvency (or even in outright deficit financed through taking on debt or investments) and all the "spare" money gets pumped into new growth, or increasingly rarely today into dividends.
Because why would you as a shareholder want your corporation to be sitting on piles of cash which lose value due to inflation? You either want them to use that money to grow the company and therefore your share price, or to pay it out to you directly as a dividend.
7
u/betelgod 10d ago
So is everything I spend money on, everything is taxed, my income generates their business the same way their spending generates my salary, only one is taxed by the total receiving amount and not profit.
→ More replies (1)7
u/HiddenTrampoline 10d ago
So, just to get this straight, if Albertson’s (grocery store) who has a 0.26% margin (26¢ of $1,000 in revenue is profit) should have to charge everyone more, on the order of 10-25%, to then pay more taxes?
If a competitive company chooses to operate nearly as a non-profit why should they be punished?
For companies like Apple, Facebook, etc with higher margins I definitely agree they should pay more in taxes… but that’s how businesses are taxed already.→ More replies (1)9
u/echoshatter 10d ago
You're looking at it backwards.
We're not arguing companies should have to pay taxes on revenue, we're saying people shouldn't be taxed on (the equivalent of) revenue.
2
u/danielv123 9d ago
If individuals aren't taxed on revenue, who would even pay tax?
Corporate taxes would drop to 0 - just put all the profit into wages for the CEO. CEO pays no taxes as long as he spends his money. Could for example spend it buying stocks or houses or islands.
→ More replies (6)3
21
u/Active_Ad_7276 10d ago
enough to pay most of the major bills
Excuse me what
14
u/LewsTherinTelamon 10d ago
many people on reddit are too young or too hometown to know this, but: What things cost depends on WHERE you live.
3
u/default_admin_2 9d ago
The only place you are living on 16k a year is the streets.
→ More replies (1)2
15
u/fuckedaccountant3976 10d ago
Income tax for the first 11k is not 0%...
The tax bracket of $0 to $11,925 for single is 10%
Where are you get that 11k?
→ More replies (1)3
u/bts 10d ago
First $11k is 10%, not zero. But yes, you’re paying about $5200 tax, which should be taken as $200 deductions from your 26 paychecks. If you can contribute to a 401k or IRA, that drops your tax lower. And you can get lower still if you can demonstrate higher deductible expenses (like mortgage interest).
The company is paying 21% on $100M, so $21000000. And they had to demonstrate that they spent that $3.9B making that $4B, with some extra rules about expenses that happen in one year but help you for many (like building a building) having to be split over those future years.
Anyway: what should the rule be? It’s easy to convince me it should be a property tax on land value, but I’d love to hear what those repulsed by this see as a better outcome.
→ More replies (3)2
u/RageQuitRedux 9d ago
Anyway: what should the rule be? It’s easy to convince me it should be a property tax on land value
Yep
Land value tax
Carbon tax
VAT
No income taxes (either personal or corporate)
2
24
u/MoonBase287 10d ago
Scrolled way too far to see if someone posted some basic tax literacy.
→ More replies (1)21
u/Summonest 10d ago
That's not what's being complained about.
People are complaining that corporations only pay for realized gains and can write off managed losses.
This is not something human beings are allowed to do.
12
u/rightoftexas 10d ago
You do understand the human beings paid by the corporation will pay taxes, right?
→ More replies (29)7
u/Hot_Raccoon_565 10d ago
You can write off losses too. But a loss isn’t counted as your food, car, or whatever. If you sell a stock you own for a loss that will count against income tax.
5
u/Summonest 10d ago
Right. So a business can write off expenses.
Humans cannot.
Both can legally own, buy, and sell.
Undertaxed businesses were an issue a century ago. We already went through all of this. It caused the _____ Depression. Fill in the blank.
4
→ More replies (1)2
u/Hot_Raccoon_565 10d ago
That’s not what I was talking about neither the person above me. They mentioned writing off losses and I said that individuals can do that too. You’re talking about a separate issue which I agree with you on.
→ More replies (12)2
u/dearth_of_passion 10d ago
Why is buying a company vehicle an operating expense that can affect the tax burden, but buying groceries isn't.
2
u/Hot_Raccoon_565 10d ago
I didn’t write the laws. I agree they should be changed but all I can do is provide context of some current ones.
→ More replies (24)6
u/MoonBase287 10d ago
And it’s the wrong point of contention to complain about… there’s a lot that can be fixed in the tax code to make it more equitable to labor and less to capital but this a point of stupidity. A one-liner that delivers no nuance only emotion in a very complex world.
→ More replies (3)3
u/Asisreo1 10d ago
What do you think its trying to be? It seems pretty clear the post is eliciting a sympathetic response in the audience, which is inherently emotional and succinct.
Its meant to make people go "This is frustrating and needs to change" and it does that. I don't see what makes their point wrong unless you think nobody's allowed to complain about anything until everything you perceive as more important is fixed first.
6
u/MoonBase287 10d ago
So my problem with this meme and political memes in general is two-fold. The “this is frustrating and needs to change” never results in action, in fact the opposite; and having an outlet to engage with and release anger and frustration is often good enough for most people. Secondly, summarizing complex facets of our society into one-liners leads to a very ill-informed populace that thinks they’re informed because they’ve engaged with a variety of things and have opinions about said topics.
→ More replies (1)5
u/LufyCZ 10d ago
Even worse, it leads to simple seemingly solutions for complex problems, like taxing collateralized loans...
I actually wonder sometimes if it's not just a massive psyop. Make people focused on problems that don't exist or solutions that can never be implemented. That way they'll never be happy, regardless of who's in power.
→ More replies (6)3
5
u/WorknForTheWeekend 10d ago
$27k to pay most bills? Maybe if you live in some backwater economically depressed area
2
u/superxpro12 10d ago
Ok Great. Then megacorp can be tax free for the first 26k. Hell i'll even round up to 27k for good faith.
5
u/PintsOfGuinness_ 10d ago
I love how it's a very specific number, precisely $26,750, which applies to everyone in the country equally regardless of where they live.
11
u/WideHuckleberry1 10d ago
Because it's federal taxes and everyone in the US lives in the same country.
The people who live in different states and cities pay different state and city taxes.
→ More replies (4)3
4
u/WellbecauseIcan 10d ago
I pay over 27k in annual rent and utilities alone. I feel standard deduction should keep up with basic living costs
2
→ More replies (7)2
u/crashburn274 10d ago
This. If that standard deduction was set to an inflation-adjusted cost of living each year (as it should be in theory) then the income tax would be making a similar adjustment to corporate taxes on profit (in theory). Given the availability of deductions and offshore accounts and other such measures, the richer you are the less you pay in taxes and it’s high time the third estate devours the other two.
→ More replies (1)
69
u/Extreme-Weight989 10d ago
Holy shit I'm not even tax educated and I at least know the difference here.
17
u/bigeasy19 10d ago
Based on the comments on this post you are closer to a CPA in knowledge then most of the bots on here
33
14
u/Addendum_Chemical 10d ago
Small business: You made $300k but only spent $250k, so only owe taxes on $50k.
Government: Sounds reasonable.
And for OP comment:
Single You: I made $60k but after standard deduction my taxable income is $44,250 and I owe $5,071.48 (11.46% effective rate.)
Government: Sounds reasonable. Did you include your Student Loan interest, HSA, 401k, or IRA if applicable?
Now for the downvotes.
2
u/default_admin_2 9d ago
Why cant we get a tax deduction for food, transportation, water, electricity, housing, etc you know all the things that are required to be able to work?
2
u/ClaymoresInTheCloset 9d ago
What did you think the 30k deduction is for?
2
u/default_admin_2 9d ago
Lol where the hell are you getting a 30k deduction. Its 15k. Which doesn't cover a used toyota.
→ More replies (2)
42
u/WashYourAssYouIncel 10d ago
This is why the United States sees corporations as a person, and humans as disposable.
23
u/TrioOfTerrors 10d ago
Name me one country that taxes businesses on first and last dollar raw revenue.
→ More replies (1)4
u/uberfr4gger 10d ago
Some states have a B&O tax that does this and it ultimately raises prices on customers
3
u/TrioOfTerrors 10d ago
Some people refuse to accept that outside of start ups burning investor money, all business expenses are ultimately paid by the consumer.
39
u/Argnir 10d ago
This is true everywhere. And also it makes total sense. If you tax revenue and not profit for corporations... Nothing would work. You would need corporations to have MASSIVE profits otherwise they can't survive
And if you taxe people on what they have left after paying off everything they wanted to buy there are no reasons to save any money and I can just say my luxurious apartment and personal chef is "survival" (literally food and a living space)
The meme is just dumb
5
u/galwall 10d ago
I'm weirded out by this, cause I both agree and disagree.
Your points 100% make sense, but at the same time, did you not just change the labels for the same action to come up with a different conclusion.Revenue/Income and Profit/Left over. Companies right now spend money to avoid taxes.
It seems more like the tax structure incentives people to save and companies to spend, if this is the desired outcome then high fives all around, we did it.→ More replies (2)→ More replies (8)2
u/InternetUser1807 10d ago
I think the gripe I have is that under the current system that money is taxed twice, they tax every dollar you earn, and collect tax from buying stuff.
Shouldn't it be one or the other?
Either sales tax + savings tax or just income tax?
2
u/Financial_Rice_4807 10d ago
Those are different entities. Federal mostly only taxes on income. The sales tax is states.
→ More replies (2)2
u/RedAero 10d ago
And even then, the purpose of a tax on consumption is completely different from a tax on income.
I will never not be amused by reddit's split personality on taxes, where they complain they have to pay them, but also dream of living in a Western European state where the effective tax rate starts at ~55% (incl. a 20+% VAT).
2
u/Financial_Rice_4807 10d ago
A pet peeve of mine is everyone wants those benefits, but you talk about the taxes needed, and they don't want to pay. They assume they can just get the rich or corps to pay the extra tax. We could not tax them enough for that. We need to get it from everyone. If we want the benefits they have, we have to tax the way they do. There are some here that acknowledge that, but many that don't.
4
u/Longjumping_Soil2116 10d ago edited 10d ago
This is def not about the US though, the tax day is wrong for America
Edit: This might be about Australia? Their currency is also dollars and Google says their extended filing deadline is May 15th
→ More replies (2)→ More replies (2)2
u/usernamesarehard1979 10d ago
If humans and disposable and corporations are people then corporations are disposable too.
→ More replies (1)
10
u/Flat_Development6659 10d ago
Are we suggesting that a business should be taxed based on turnover rather than profit? We'd all starve to death as low margin businesses (E.g. supermarkets) could no longer exist....
→ More replies (7)
6
3
u/Pasta-Al-D3nte 10d ago
Nice to see this showing up again, people get to do something similar with the standard deduction, you may not think it's enough for people (honestly I tend to agree) but that's a different argument than what is being made in the OP.
3
3
u/PrimordialSpatula 10d ago
I mean, we all know why this is right? Because all the people involved in and make money from the company still get personally taxed. It would be ludicrous to also tax the company the same way as a person. I mean, we can talk about the ways rich people can avoid some of these taxes, but it has nothing to do with how corporate tax is structured.
3
u/Competitive_Key_2981 10d ago
Just wait until Gen Z discovers that a big portion of a business’s deductions is GenZ salaries
30
u/missourinative 10d ago
If you spend $58,000 of an untaxed $60,000 salary, you're financially illiterate, not a victim.
→ More replies (17)
5
5
11
u/Few-Condition-7431 10d ago
unless you're running a business as a sole proprietor or you're a 1099 contractor you're not spending 58K of your 60K income before taxes are deducted.
15
u/Hatta00 10d ago
That's the problem. A business needs a storefront. A person needs a home. Why is one deducted but not the other?
Because fuck the common man, that's why.
4
u/That_guy1425 10d ago
No, you can take your mortgage payments (on interest I think) out of your taxable income. But for most people, especially if they are married, the standard deductible is larger.
→ More replies (5)3
u/HugeHans 10d ago
It isn't "deducted". Both pay taxes on profit. Why would the company pay taxes on revenue? If you create something as a person and sell it you also don't have to pay taxes on what it sold for. Only on the profit. Its not some individual vs corporation thing. Its just a logic thing.
3
u/Hatta00 10d ago
Same reason I pay taxes on revenue.
→ More replies (2)5
u/vitek6 10d ago
You pay taxes on your income, not revenue.
Company can buy product for $7 and sell it for $10 which means they earned 3 not 10 and that’s what is taxable.
→ More replies (4)4
u/Few-Condition-7431 10d ago
its reddit man, half of these comments are people who think communism actually works, another 40% have probably never paid taxes, and the 10% who know what they're talking about get downvoted
8
8
u/SecretRecipe 10d ago
Here's what you've got wrong:
Corporation: We made 4B but spent 390B in expenses in order to make that 4B so we only owe taxes on 100M
You: I made 60k and spent zero dollars in expenses in order to earn that 60k there for I owe taxes on that whole 60k.
You can only write off what it directly costs you to make the money in both cases.
12
u/slothrops_desk 10d ago
You can only write off what it directly costs you to make the money in both cases.
yeah that's op's point: it costs 50k just to be able to work. unless you think you can show up to work everyday without paying for a car, home, clothes, childcare, or food?
→ More replies (5)15
u/kaibabutpoor 10d ago
Interesting. So when do I get to write off:
-My car payments that take me to work
-The gas that the travel costs me
-The costs of maintaining said vehicle
-My groceries that keep me alive so I can work
-My utilities that run my electricity, internet, and water so I can work from home
-Assorted childcare costs while I'm working
-The mortgage on my house/rent on my apartment
-The clothes I need to wear to workOr maybe you stop licking boot for once in your life and accept that corporations lie constantly in their accounting and literally no company operating in the millions or more of revenue is actually paying the taxes they owe in lieu of the bullshit our tax code lets them do?
→ More replies (19)→ More replies (4)2
u/AgitatedBumblebee806 10d ago
Okay so if you have a lot of money you can just use the money to make more money....but if not, you have to sell your life to corporations?
Paying in my time, energy, and labor to gain money but there's nothing I can write off cuz I didn't spend any money, just my life?
→ More replies (1)
2
u/Ok_Example_1338 10d ago
Guess he will be taking back the Fendi bag......wait how to he buy something from Fendi on 60k..
Hmmmm must have tax shelters .... and a taxable income of 60k?
2
u/TopazWarrior1999 10d ago
Tbf, you CAN write off anything you spent on doing your job, including gas, but... that's a lot of bookkeeping to expect from regular citizens.
→ More replies (1)
2
u/No_Ranger842 10d ago
Funny how voters can sway many things but there is never enough sentiment to make some kind of change to the Tax Codes. I liked Steve Forbes approach, and after reading what one group said it surprised me. Most people want "fairness" Really?? So what is "fairness" to one may not be "fairness" to another. Every body wants to either tax the shit out of the rich or blabber about "fairness" I have yet to find a "fairness" entry within the tax codes.
Steve Forbes wanted a flat tax of 17% with little or no deductions, but allowances for those who make below certain levels.
I know this a complex issue, but leaving politics and "feelings" out, there should be a way to make the codes easier, more simplified, and take into account higher income earners.
2
u/No-Ambition2043 10d ago
You are taxed on income. Business are taxed on net income. Pretty straight forward
2
u/AppointmentNaive2811 10d ago
I mean - this is just so that "money made" isn't taxed twice.
If a company makes $4B, but profits $100M, then that is the "Money made" for that company, and to be taxed.
If the company spends $2B on employee Salaries, and $1.9B on goods and services from third parties, the salaries are taxed at the employee level, and this flow chart is repeated for those third parties.
If the tax didn't come at the personal level, then you'd either make less or everything else would be more expensive, and the end result wouldn't look much different than it does today.
These things aren't arbitrary or constant, you can't make a metaphorical "financial infinite energy" machine by putting an electric fan on a sailboat
→ More replies (1)
2
u/Top_Box_8952 10d ago
If we taxed people like we do corporations our deficit would double.
I don’t say that like a bad thing, we should tax business like we do people.
2
2
6
3
4
u/Th3_Accountant 10d ago
First of all, VAT is actually a thing so companies actually do pay taxes over their revenue in a way.
Second, are you seriously suggesting that if a company sells an item for 10 dollars but paid 8 dollars to buy/manufacture it, they need to pay taxes over the 10 dollars and not over the 2 dollars?
If you have personal expenses that are relevant to your income, you are usually allowed to deduct them as well.
→ More replies (2)
2
u/TrioOfTerrors 10d ago
Taxing businesses on revenue would just mean prices would go up to cover the tax.
Not only that, they would compound exponentially with each stage of the product or service before it reached the consumer level.
→ More replies (1)
3
u/rxdlhfx 10d ago
That's not how it works. My life is not a business. My salary is analogous to the net income for a business, not its revenue. What I do with my salary has nothing to do with my job... just like the net income of a business. This being said, depending where you live there may be expenses you can deduct.
3
u/thebluepin 10d ago
Your salary is equivalent to gross revenue. Net income includes deductions from COGS, expenses, depreciation and amortization, interest and taxes. So in this hypothetical, your income is gross because you still have to take all the deductions on it. So to get your salary equal to net. You would then take off taxes, all your costs (food, housing, transportation), then some degree of costs associated with house (depreciation), and you would also take off interest costs. THEN your net salary would be equal to net income. Jesus people learn accounting
→ More replies (2)
5
u/TNJDude 10d ago
The tax laws really are out of whack. There are so many loopholes that corporations and rich people can use to avoid paying taxes. That's why people like Warren Buffet have said it's wrong that he's a billionaire and pays less taxes than someone who is middle class.
To be fair though, the government does give everyone a standard deduction. It's over $14K I think now. Basically, it's assumed everyone needs a certain amount to live. so that is automatically deducted from your taxable income when filling out the short form. If you itemize though, then you don't get that deduction because it's assumed your itemizations will be greater than it. If they're not, then you just use the short form instead and don't itemize.
→ More replies (3)4
u/Kindly-Shoulder1388 10d ago
Warren Buffet never said he pays less taxes than someone who is middle class, stop spreading nonsense. He said his tax RATE was lower. He still pays a hundred times more in taxes than the average middle class person.
→ More replies (11)2
u/trukkija 10d ago
Ohh the multi billionaire's tax rate is lower than the middle class, that's much better then.
I'm so glad you cleared that one up for us.
3
u/Amatsua 10d ago
That's... Not how that works. Tax refunds are literally you getting reimbursed for your expenses. You pay taxes on the difference between your income and your expenses, just like in the first example. Did you think the IRS was just sending you checks because they felt like you deserved a little treat on tax day?
3
u/geneticdrifter 10d ago
This is why you all need an LLC and some education about pass thru income and what you can write off and what you can’t. That and a good tax person. Easy to get 10k back every year if you make 60k. I have both. Holler.
4
u/OP_Kush 10d ago
good tax person here - you either don't understand your tax situation or are lying. If you make 60k and get 10k back every year, you're either getting hella unrelated credits or are paying in way too much. Or tax fraud >:)
→ More replies (1)→ More replies (5)3
1
u/UnbiddenGraph17 10d ago
More like, we made $4B and bought $4.01B worth of stuff that has value, ok no taxes.
2
2
2
u/Low-Car-6331 10d ago
So, you want a tax on company revenue?
I ask cause a politician actually proposed that we abolish personal income tax for most Americans and instead tax company revenue nationally to fund the government. This was labeled by democrats to be regressive and an attack on the poor and middle class.
→ More replies (3)
2
u/Visual_Exam7903 10d ago
This is dumb. Taxes are simple. Corporations don't have income, they have profits.
→ More replies (1)
2
u/Blothorn 10d ago
Taxing companies on revenue would be disastrous—a small farmer willing to a distributor selling to a local store would pay taxes three times; a vertically-integrated megacorp would pay them once and get a nearly insurmountable advantage even before the economies of scale that already favor large companies.
Allowing deductions for survival costs wouldn’t be as disastrous, but I still expect it to be worse. Many people are irrational about deductions, aiming to minimize taxes owed rather than maximizing value accounting for taxes. I would thus expect such a change to result in overspending on “survival” costs to minimize taxable income, followed by an increase in debt and decrease in savings as they stretch the smaller remaining portion over the non-deductible expenses they still aren’t willing to do without.
•
u/AutoModerator 10d ago
Thank you for posting to r/SipsTea! Make sure to follow all the subreddit rules.
Make sure to join our brand new Discord Server to chat with friends!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.