Quote:
Originally Posted by Rochard
Not at all. So Minte is out of $200k. He'll still have a cook, a maid, and a gardener. He'll still be able to put gas in his Lambo, still afford to take vacation in Hawaii, ANd STILL afford to buy yet another exotic sports car. (And chances are he'll write off the cook, the maid, and the gardener as "business expenses", the new car as a company car, and the trip to vacation as a business trip so he won't really pay that extra 2% anyhow.)
We are either going to tax the middle class or the rich. Which one is able to take the hit? Because it seems to me like we keep raising the taxes on the middle class which can't afford it.
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15 years ago,maybe a person could get away with taking those things as write-off. There is not a real accountant worth anything that would even try to take those kinds of deductions today.
The biggest write-offs we take is rapid depreciation through new capital investments. Specifically,we buy new equipment. Then rather than taking a 7 year schedule we might write it off in one year. The upside is that the economy benefits because we continue to buy equipment and in most cases hire new people to run them.