A simple truth; the purpose of business is to make money

[John Smith]

Even charitable organizations need to make money to pay salaries, even if the organization itself makes no profit. Other businesses are in business to make money.

Any costs incurred are passed on to the consumer. That, I believe, includes what they pay in taxes, health insurance, and/or other benefits.

This is why we need an income tax system that is fair; those with more money should pay more taxes. Passing debt on to future generations because the wealthy don't pay their fair share is not a good way to do this. It will catch up to us.

I'm going from memory here, but I believe when we put men on the moon the top income bracket was taxed at 78%. I believe under Reagan it got cut to 28%, and our debt tripled. Clinton raised it to 35% and turned the deficit into a surplus. G.W. cut the top rate again. Not sure what Obama did. Trump cut it again.

We paid off our WWII debt, funded the GI bill, and kicked off the interstates with a top bracket rate of over 90 percent.

I knew people in that bracket and the were doing quite well. As those things got paid off, the rate came down. It's come down way too far for the good of the nation.

Taxing businesses is not the same as taxing people. Customers pay for the tax on the business.

[birlinn]

Re: A simple truth; the purpose of business is to make money

Tell that to Liz Truss.

[Dan McCosh]

Re: A simple truth; the purpose of business is to make money

I thought customers tend to be people. (Dogs excepted.)

[Boatbum]

Re: A simple truth; the purpose of business is to make money

Even charitable organizations need to make money to pay salaries, even if the organization itself makes no profit. Other businesses are in business to make money.

Any costs incurred are passed on to the consumer. That, I believe, includes what they pay in taxes, health insurance, and/or other benefits.

This is why we need an income tax system that is fair; those with more money should pay more taxes. Passing debt on to future generations because the wealthy don't pay their fair share is not a good way to do this. It will catch up to us.

I'm going from memory here, but I believe when we put men on the moon the top income bracket was taxed at 78%. I believe under Reagan it got cut to 28%, and our debt tripled. Clinton raised it to 35% and turned the deficit into a surplus. G.W. cut the top rate again. Not sure what Obama did. Trump cut it again.

We paid off our WWII debt, funded the GI bill, and kicked off the interstates with a top bracket rate of over 90 percent.

I knew people in that bracket and the were doing quite well. As those things got paid off, the rate came down. It's come down way too far for the good of the nation.

Taxing businesses is not the same as taxing people. Customers pay for the tax on the business.

I have worked in the non-profit sector most of my life and they make as ruthless business decisions as the for-profits. Their cause may be noble, but they have to have enough income and low enough costs to stay in operation. They are as committed to their organizational survival as any fortune 500 company.

As for customers paying the taxes. I say this every time someone wants to increase business taxation. They pass any added costs, including higher taxes, along to the consumer. So really it is just a hidden tax for the consumer. That's all well and good when it is Boeing being taxed as the people who fly are often more well off financially, but when it is oil, electricity or other necessities, it effects everyone including the poor.

[John Smith]

Re: A simple truth; the purpose of business is to make money

I have worked in the non-profit sector most of my life and they make as ruthless business decisions as the for-profits. Their cause may be noble, but they have to have enough income and low enough costs to stay in operation. They are as committed to their organizational survival as any fortune 500 company.

As for customers paying the taxes. I say this every time someone wants to increase business taxation. They pass any added costs, including higher taxes, along to the consumer. So really it is just a hidden tax for the consumer. That's all well and good when it is Boeing being taxed as the people who fly are often more well off financially, but when it is oil, electricity or other necessities, it effects everyone including the poor.

You'd think we'd learn, but we don't.

[Andrew2]

Re: A simple truth; the purpose of business is to make money

'Charities' in UK tend to avoid taxes, but to stay in 'business' they have to give a certain % to the good cause. Unfortunately it isn't a very large %...
I remember when people would give their time to the good cause, rather than treat it as a good earner.
A good shake up is def needed.

A close friend is one member of a family business that set up a trust fund to give to good causes in the US, in the region of $200 mil/yr . The rules in the US are less strict than UK and the other members of the family tended to treat it as their own bank. When he objected to their rejection of some causes he put up, they voted him off the board....

So, I am a bit suspicious of charities motives. Some do excellent work, like Medicines sans Frontieres and some of the other water drilling charities. Many more, without doubt.

But, there is the other problem. Why, in this day and age, do so many have to get involved in Africa to do basic medical work, just because the guvs there can't be bothered?

[skuthorp]

Re: A simple truth; the purpose of business is to make money

The west attracts many of their medically trained graduates is why, amongst other things.

[ERGR]

Re: A simple truth; the purpose of business is to make money

Tax rates for the rich are misleading. 80% tax for the rich means 80% of the taxable income. An 80% tax rate is obscene, but it works because the rich have more ways than the poor to use loopholes and avoid taxes.
I prefer a system with more reasonable maximum tax rates, say 50% income tax over a certain limit, and the loopholes closed so all of the income is actually taxed. I don't know how to get there.
/Erik

[Boatbum]

Re: A simple truth; the purpose of business is to make money

Tax rates for the rich are misleading. 80% tax for the rich means 80% of the taxable income. An 80% tax rate is obscene, but it works because the rich have more ways than the poor to use loopholes and avoid taxes.
I prefer a system with more reasonable maximum tax rates, say 50% income tax over a certain limit, and the loopholes closed so all of the income is actually taxed. I don't know how to get there.
/Erik

I agree completely.

[John Meachen]

Re: A simple truth; the purpose of business is to make money

'Charities' in UK tend to avoid taxes, but to stay in 'business' they have to give a certain % to the good cause. Unfortunately it isn't a very large %...
I remember when people would give their time to the good cause, rather than treat it as a good earner.
A good shake up is def needed.

A close friend is one member of a family business that set up a trust fund to give to good causes in the US, in the region of $200 mil/yr . The rules in the US are less strict than UK and the other members of the family tended to treat it as their own bank. When he objected to their rejection of some causes he put up, they voted him off the board....

So, I am a bit suspicious of charities motives. Some do excellent work, like Medicines sans Frontieres and some of the other water drilling charities. Many more, without doubt.

But, there is the other problem. Why, in this day and age, do so many have to get involved in Africa to do basic medical work, just because the guvs there can't be bothered?

I understand the sentiment.My view is that having identified the need and begun fundraising to achieve the objective,the next aim should be to make the charity itself redundant, having alleviated the problem.That doesn't happen.

[Andrew2]

Re: A simple truth; the purpose of business is to make money

I agree too, but private money buys better tax advice than public.

[mike9199]

Re: A simple truth; the purpose of business is to make money

That's life I guess. Everyone is looking for their own profit.
We are trying to save as much cash as possible these days and all our accounts are managed by those guys.
The difference in rates is huge between our local accounting companies and them.

[Too Little Time]

Re: A simple truth; the purpose of business is to make money

Tax rates for the rich are misleading. 80% tax for the rich means 80% of the taxable income.

The rich have for a long time had non realized gains excluded from taxable income. And, of course, realized capital gains get a taxed rate, because ...

[leikec]

Re: A simple truth; the purpose of business is to make money

`Mankind was my business. The common welfare was my business; charity, mercy, forbearance, and benevolence, were, all, my business. The dealings of my trade were but a drop of water in the comprehensive ocean of my business!'

Jeff C

[sandtown]

Re: A simple truth; the purpose of business is to make money

Thread title is not quite correct . .

A simple truth; the purpose of business is to make money

For some time back in the early days of the republic corporations were viewed with suspicion . . . ah, the good ol' days !!

Initially, the privilege of incorporation was granted selectively to enable activities that benefited the public, such as construction of roads or canals. Enabling shareholders to profit was seen as a means to that end. The states also imposed conditions (some of which remain on the books, though unused) like these*:

• Corporate charters (licenses to exist) were granted for a limited time and could be revoked promptly for violating laws.
• Corporations could engage only in activities necessary to fulfill their chartered purpose.
• Corporations could not own stock in other corporations nor own any property that was not essential to fulfilling their chartered purpose.
• Corporations were often terminated if they exceeded their authority or caused public harm.
• Owners and managers were responsible for criminal acts committed on the job.
• Corporations could not make any political or charitable contributions nor spend money to influence law-making.