Those figures absolutely reasonable!! .. heck such a person is paying more than TRUMP did ! and making hardly any profit at all.. doesn't seem worth it even... I guess if one X this by a million.. your profit would seem astounding to me though. Not like you are struggling in any form.
I DO feel small business owners should get breaks like that.. they NEED IT - for sure.. I feel terribly bad for them -when it comes to health insurance costs ! Most can't even get off the ground..
Ok, so now let’s look at my business, but now the dollar figures are huge.. in the millions+ and I’m going to add some capital expenditure.
Sales of sales of services...$100 Million
Sale of widgets.................$500 Million
Total Income....................$600 Million
Office rent.......................$ 20 Million
Fuel and auto usage..........$ 20 Million
Advertising Costs..............$ 20 Million
Cost to build widgets.........$ 40 Million
Factory to build Widgets… $ 1,000 Million <- meaning 1 billion
Total Expenses.....................$1.1 Billion
Net profit – 500 Million That’s a 500 Million loss
The tax code allows me to take the 500 million loss and spread it out over some period of years. The tax code recognizes that many businesses do not have 12-month business cycles. Often times a business will take years to start showing a profit. It’s calling making an investment.
This is what Trump did. He invested a large amount of money in year one into something and had a big loss for that year.
Did you know that the Clintons took the exact same type of tax deductions for about $600,000 one year? That way they could spread that loss over many years.
If this kind of tax relief was not allowed for business, few people would take the risk of starting a business. Or the other solution is to just raise your prices and charge enough for products to make up for not being able to get the tax relief. So that way consumers will cover the tax part of investments.
There is absolutely nothing morally or legally wrong with the tax deduction that Trump took. The only thing wrong was the way the Clinton camp played it to make it look like he did something wrong. And he’s right. He was smart to do what he did. The tax code is the way it is to encourage huge, at risk, investments like what he made.
It's this crazy rampant Corporate Greed.. it's killing small businesses...
Where my husband works.. the top CEO's are running the company into the ground.. laying everyone off, train derailments are up, they flap their mouths about "safety" - another line of BS....while giving themselves 3 - 7 million in bonus's.. last he heard they are selling most of the stock.. he calls it another Enron -not that I even understand all that... I don't... something's in the wind... no care or concern for their workers while they line their golden pockets...
I just wish the law had "caps" on the Greed... it's never going to stop..
I agree with this. The company I just retired from is doing something similar. A lot of CEO’s run a company into the group to make profits look high. They get their bonus and then change jobs before the company the full effect of their corporate raiding is noticed. And because stock holders demand high dividends they look the other way… killing the cow by over milking it.
I agree that it’s stupid business. But it’s a private business and they can be as stupid as they want.
One way to fight this is to start your own business. Or the employees buy the business and run it as an employee run business.
The thing is that the Republican Party is not the only party that supports the corporate greed. The Democrats do exactly the same thing…all the while talk as though they are not. They are all owned by the big corporations… bought and paid for. Their reward is their power and their increased wealth. The average congress person increases their wealth by 14% a year. Now how do they do it on their salary?