How Taxes on Businesses Work...

[Angry White Male]

...read an article today on CBC (billion dollar a year 'make work' project courtesy of your tax dollars), and thought I get more thorough and explain why some businesses pay no tax.



I am in a position to do so, as I am one of the businesses that they were referring to, that "pay no tax."



If I plunk, say, $200,000 of my own money on a truck and trailer, and put it to work, what happens if I only gross $150,000 on that truck for that year?  You got it...  I'm running at a $50,000 loss!  Yeah, I made $150,000 on paper, but in fact I have lost money.



This is very simple to understand.  I can carry my losses forward to the next year, and if I couldn't, there'd be no incentive whatsoever to even buy the equipment, as I could simply let my money sit in a Savings account, tax free, just like your chequing and savings accounts are.

[Anonymous]

...read an article today on CBC (billion dollar a year 'make work' project courtesy of your tax dollars), and thought I get more thorough and explain why some businesses pay no tax.



I am in a position to do so, as I am one of the businesses that they were referring to, that "pay no tax."



If I plunk, say, $200,000 of my own money on a truck and trailer, and put it to work, what happens if I only gross $150,000 on that truck for that year?  You got it...  I'm running at a $50,000 loss!  Yeah, I made $150,000 on paper, but in fact I have lost money.



This is very simple to understand.  I can carry my losses forward to the next year, and if I couldn't, there'd be no incentive whatsoever to even buy the equipment, as I could simply let my money sit in a Savings account, tax free, just like your chequing and savings accounts are.

Ya I know how it works. And I know how the CBC doesn't.

[Angry White Male]

Reading some of the comments on CBC, it seems like nobody can understand that.  And if they do, it's down-voted.



Now, I'm all for legit business.  I don't cook the books, but I support roasting those that do.



In fact, received a call from Revenue Canada on Friday morning stating that my audit was 100% successful.  There wasn't one calculation in question.

[Angry White Male]

The only advantage I get running a business, as opposed to working for someone else, is that I can pay myself in dividends, which are taxed at a lower rate.



Now, understand that in doing so I am excluded from contributing to Canada Pension Plan, and thus will receive less from that upon retirement.



As the owner, I am also not allowed to "put myself" on Employment Insurance, even if it was slow enough to technically warrant that.

[Anonymous]

The only advantage I get running a business, as opposed to working for someone else, is that I can pay myself in dividends, which are taxed at a lower rate.



Now, understand that in doing so I am excluded from contributing to Canada Pension Plan, and thus will receive less from that upon retirement.



As the owner, I am also not allowed to "put myself" on Employment Insurance, even if it was slow enough to technically warrant that.

I knew about this from Thiel. He has been an employer for more than twenty years.

[Angry White Male]

On the flip-side, I am not pro-business by any means...



Let me relate this story:



Worked for a medium sized company for over a year, and felt that I deserved a raise (had never received one).  Owner said no.  So, I stopped hauling his shit that was illegally overweight half the time.  I also stopped working past eight hours, since they had screwed me on overtime pay in the past.



I was fired for not doing these things anymore.



Owner was to pay me two weeks severance, and said he would.  He did not.



Labour Board was contacted, and we were put on a "three-way" call to 'settle' the dispute.  Business owner ended up screaming at me, and then screaming at the Labour Board officer.



That is when the call was cut off.  I'm assuming the Labour Board dude still got an earful from the fucking asshole that I had worked for, and terminated my connection.



Two weeks later I received the two weeks pay I was owed.



Some business owners are literal psychopaths, and cannot be left alone to do their own thing either.  There are those that will rape and pillage, and for them, they need to be babysat and controlled.

[Anonymous]

On the flip-side, I am not pro-business by any means...



Let me relate this story:



Worked for a medium sized company for over a year, and felt that I deserved a raise (had never received one).  Owner said no.  So, I stopped hauling his shit that was illegally overweight half the time.  I also stopped working past eight hours, since they had screwed me on overtime pay in the past.



I was fired for not doing these things anymore.



Owner was to pay me two weeks severance, and said he would.  He did not.



Labour Board was contacted, and we were put on a "three-way" call to 'settle' the dispute.  Business owner ended up screaming at me, and then screaming at the Labour Board officer.



That is when the call was cut off.  I'm assuming the Labour Board dude still got an earful from the fucking asshole that I had worked for, and terminated my connection.



Two weeks later I received the two weeks pay I was owed.



Some business owners are literal psychopaths, and cannot be left alone to do their own thing either.  There are those that will rape and pillage, and for them, they need to be babysat and controlled.

I have really only had one employer in my entire life. As much as I hate all the CROR rules for class 1railways, CP is pretty good. My wife is a nurse and I make more than she does. In seven years I will be 55 and retired living in a Panamanian paradise. That's almost impossible to do with most blue collar jobs these days.

[GORDY GAMBINO]

...read an article today on CBC (billion dollar a year 'make work' project courtesy of your tax dollars), and thought I get more thorough and explain why some businesses pay no tax.



I am in a position to do so, as I am one of the businesses that they were referring to, that "pay no tax."



If I plunk, say, $200,000 of my own money on a truck and trailer, and put it to work, what happens if I only gross $150,000 on that truck for that year?  You got it...  I'm running at a $50,000 loss!  Yeah, I made $150,000 on paper, but in fact I have lost money.



This is very simple to understand.  I can carry my losses forward to the next year, and if I couldn't, there'd be no incentive whatsoever to even buy the equipment, as I could simply let my money sit in a Savings account, tax free, just like your chequing and savings accounts are.

Its income  $ 150, 000, less depreciation on the truck we here depreciate 22.5%, not the capital cost.



You still have the asset.



You wanna make money you put in ya capital unless you are a woman that can make a million dollars with only one cunt working for her.



That reminds me of Berry she is fucken pissed she no marry you or me but has to settle as she has always done on 2nd or even 3rd best.



That whore is strictly cash and cum.

[Anonymous]

Its income  $ 150, 000, less depreciation on the truck we here depreciate 22.5%, not the capital cost.



You still have the asset.

I will be looking after the money. You get in the kitchen and and make me a sammich.

[kiebers]

ac_toofunny

[Renee]

Its income  $ 150, 000, less depreciation on the truck we here depreciate 22.5%, not the capital cost.



You still have the asset.

I will be looking after the money. You get in the kitchen and and make me a sammich.

That's right. You put that bitch in his place, otherwise he'll walk all over you.  

[Anonymous]

Its income  $ 150, 000, less depreciation on the truck we here depreciate 22.5%, not the capital cost.



You still have the asset.

I will be looking after the money. You get in the kitchen and and make me a sammich.

That's right. You put that bitch in his place, otherwise he'll walk all over you.  

He will know his place.

[Zetsu]

But the high tax kinda defeats the point of running a business...  plus like Gordy said you can't deduct taxes by simply buying machinery or other assets, it's just not considered as an expense.  If you really want to evade taxes, people usually ask their accountant to make 2 balance sheet.

[GORDY GAMBINO]

or deal in cash

[Anonymous]

But the high tax kinda defeats the point of running a business...  plus like Gordy said you can't deduct taxes by simply buying machinery or other assets, it's just not considered as an expense.  If you really want to evade taxes, people usually ask their accountant to make 2 balance sheet.

What accountant would take that risk?