My favorite is estimated taxes. You get the privilege (requirement) of pre-paying your taxes to the Fed quarterly based on expected profits.
#15 | Posted by sitzkrieg at 2020-06-24 06:20 PM | Reply | Flag:
And if you overpaid, you get the money back in your return.
I have "estimated taxes" pulled out of every paycheck, based on my estimated earnings for the year. Don't forget, individuals can also be required to pay estimated taxes if they owed too much the previous year. I'm not sure I understand your complaint.
Payroll taxes are based on the employee salary, not your revenue, but also not your profits, so partial credit. Of course, the individual has to pay the same percentage on their entire salary, so probably a bigger hit to them than you.
Unemployment is also based on employee salary, not your revenue nor profits, but it's also less than 10%. Also deductible, I think.
Worker's comp isn't a tax, it's an insurance policy. It may be mandatory, but it's still not a tax and the money doesn't go to the state or federal government. It's also an expense and therefor deductible from your taxes, no? I don't get to deduct my mandatory insurance payments.
Excise and property taxes are deductible too, are they not? And unlike for individuals, there's no cap on those deductions for businesses, correct?
Sales tax collections aren't your taxes, they're taxes on the buyer, so you're not paying them. You also get to deduct the cost of collecting, tracking, and reporting them.
Unlike a business, I don't get to deduct the cost of heating or cooling my home, lighting, any services I hire like landscaping or janitorial services, depreciation of assets, and a bunch of other business expenses. So I think the comparison of businesses paying taxes on profits and individuals paying on total revenue (after minor exemptions) is still a pretty fair assessment, especially when we're talking about wage earners.