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Halfwise2 t1_j9gerax wrote

Reply to comment by fromcjoe123 in [OC] How Walmart makes money (they just released earnings for the fiscal year ending January 31) by IncomeStatementGuy

And now I'm thinking of how people pay taxes on personal "revenue" instead of on earnings.

Imagine if we didn't have to pay taxes until cost of living was taken out... rent, food, gas, car payments.... Life has operating expenses.

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MandolinSuperstar t1_j9gfyub wrote

We don't. It's called a standard deduction.

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Halfwise2 t1_j9glas9 wrote

Standard deduction for a single filer is a little under $14K... that doesn't even cover rent in a lot of places.

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cooldaniel6 t1_j9gqvux wrote

Create 2 million jobs and pay 6 billion in taxes and Uncle Sam will give you the same benefits

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Halfwise2 t1_j9h2xfo wrote

Can the 2 million jobs I create also pay only minimum wage and despite offering full time, still somehow not not be enough for food, rent, and medicine and other necessities to live?

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cooldaniel6 t1_j9idnug wrote

If people take them, yeah 🤷🏾‍♂️

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fromcjoe123 t1_j9hjrb6 wrote

I mean if you're 1099 you can literally do this.

The argument that W2 cannot benefit from this is that all other expenses are not related to generating your direct economic benefit and are discretionary or not related to your employment. If you are a business, your costs also make someone else revenue and then their earnings are taxed. Likewise, the shareholders of the business then pay their own taxes incremental to the business on any distributions or cash or their ultimate disposal of assets.

That being said, the government at the federal and state level do give you a variety of incremental deductions around costs they think have additional economic value like homeownership, children, and education.

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