"Harry Krause" wrote in message
...
NOYB wrote:
"Harry Krause" wrote in message


Let's say you bought one of those $60,000 big trucks or SUVS for your
business. After all, dentists need SUVs to drill teeth, right? Anyway,
up until recently, you could write off that entire cost against your
business income. In other words, that purchase lowered your taxable
income by $60,000 because you were able to take advantage of a special
loophole not granted to payroll employees. It is a subsidy. The
taxpayers subsidized your purchase of that SUV.


Wrong. An SUV is not a legitimate expense for a dental office. So it's
not
a subsidy...it's tax evasion and illegal.

It didn't have to be a "legitimate expense" for a dental office.




You mentioned my insurance policies. Let's say the government didn't
give
me a write-off for those expenses, and I decided that I didn't want to
buy
the insurance. It benefits the government that I'm insured in the event
of
a disability or a total loss of my home, because then they won't have to
bail me out if catastrophe strikes. I'm effectively subsidizing them
by
buying the insurance.

The government does not *have* to bail you out. Notwithsstanding that,
your insurance write-off is a subsidy provided by the taxpayers.



Even if you don't see it that way, the fact of the matter is that
insurance
is an expense of doing business. Expenses deduct from the bottom line.
Since we're only taxed on the bottom line, then why would I pay taxes on
something that is expensed?

Indeed, insurance is an expense of doing business. And you get to deduct
that expense, while drawing a benefit from it. It is a taxpayer provided
subsidy.


Sheesh. I'm an S-Corp. It's conceivable that I have a bad month in which
my expenses exceed my receipts. Since I lose money in such a situation,
should I pay income tax? Nope (Remember, I have zero income when expenses
are equal to or exceed collections). Do people who are out of work and
receive no income still pay taxes? I'm pretty sure even you'll agree that
they don't. So what form of "subsidy" are they receiving? If it were a
true "subsidy", the government would send me money in months where I had a
net loss. Since they don't do that, it's not a subsidy.