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Thread: Why do people say this phrase?: "Profits are taxed." Don't you really tax people?

  1. #1

    Why do people say this phrase?: "Profits are taxed." Don't you really tax people?

    I hear people say, "taxes are on profits." It seems to me that taxes are on people. The profit and the tax are both money. Aren't they? How can you tax an inanimate object?

    The profit just goes from one person to another person through the mechanism of taxation.

    Is this correct or not? Am I missing something? Splitting hairs? Wordplay? Do words matter?


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  3. #2
    An example would be, "We're going to tax corporations." A corporation, in-and-of-itself, is not a person. You can't get money from an abstract entity, something vague, or something ill-defined. Can you? That would be like say we're going to tax love. Or jealousy.

    You also can't tax a building where the company is located. How do you get money from a brick building? Is the brick building a man or a woman?

    Is the whole idea to use the word "corporation" to hide the fact that it really comes down to taxing a person?
    Last edited by NorthCarolinaLiberty; 11-09-2017 at 06:56 PM.
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  4. #3
    I think you are splitting hairs that don't need to be split, "taxing profits" is used to make it clear that gross cash-flow is not being taxed, and "taxing corporations" says which groups of people are going to be subject to the tax.

    I have no doubt that liberals like to take advantage of the dissociation that is coincidental in such language though.
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  5. #4
    Way I see it is income is taxed . You sell 2k a month of something and you are going to pay some taxes even if you have zero profit .

  6. #5
    Quote Originally Posted by oyarde View Post
    Way I see it is income is taxed . You sell 2k a month of something and you are going to pay some taxes even if you have zero profit .
    But corporations get to deduct all their expenses so they only pay taxes on their profits.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

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  7. #6
    Quote Originally Posted by Swordsmyth View Post
    But corporations get to deduct all their expenses so they only pay taxes on their profits.
    But they still have to pay medicare and social security taxes ?

  8. #7
    Quote Originally Posted by oyarde View Post
    But they still have to pay medicare and social security taxes ?
    Since the corporation is not a human it doesn't pay them for itself, it's share of the employees "contributions" is just part of their pay although I'm not sure if the corporation gets to deduct it as a cost, but it still gets to deduct all it's other expenses.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  9. #8
    Quote Originally Posted by Swordsmyth View Post
    I think you are splitting hairs that don't need to be split, "taxing profits" is used to make it clear that gross cash-flow is not being taxed, and "taxing corporations" says which groups of people are going to be subject to the tax.

    I have no doubt that liberals like to take advantage of the dissociation that is coincidental in such language though.


    Ah okay; makes sense. So, the taxing profits is the legal aspect. Taxing corporations is the political aspect, as in who is going to be taxed. Would that be fair to say?
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  11. #9
    Quote Originally Posted by NorthCarolinaLiberty View Post
    Ah okay; makes sense. So, the taxing profits is the legal aspect. Taxing corporations is the political aspect, as in who is going to be taxed. Would that be fair to say?
    That is how I understand it.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

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