Obamanomics: Employment In U.S. Lags Where It Was In 2007

In post 35 you attacked liberals for making the tax system complicated.

You touted your wisdom in keeping it simple.

I'm asking you...what is your solution? What is taxed? Income, gross receipts, revenue, or something else?

Now your talking about what a company makes. That sounds like revenue minus expenses. Thus, a company can maximize expenses to reduce tax basis. How is that different from now?

My example dealt specifically with gross receipts. You understand why taxing gross receipts would effectively stop in business from selling high end products right?

Quote Originally Posted by canovsp:

I'm not a lawyer. I'm only middle management at best. So I'm pleading ignorance and I'm big enough to admit it. What is the difference between income, gross receipts, and revenue?

Use that fictional vacuum company we've been talking about and give an example of each.

I don't think a law degree is necessary to understand the distinctions.

Gross receipts are your total sales. I have already discussed the problem with taxing on that.

Income is revenue minus all expenses, including the non-essential expenses. Generally speaking, this is the current method of taxation.

Revenue is generally considered your funds minus the essential expenses (cost of building the product).

My point with my responses is the insanity that is our tax system is hardly a liberal thing and as Wall pointed out, there simply isn't an easy solution to it.

Let's try this again.

Company A sells $500 vacuum cleaners. Company B sells $250 vacuum cleaners. They sell the same amount of product each year.

Labor, advertising, etc are the same. They also have the exact same profit margin based on the cost of raw materials (Company A uses high end steel).

And the end of the year, Company A will pay significantly more in taxes, thus eliminating the incentive to sell higher end products.