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What is a good example of a necessary evil? (discuss.tchncs.de)
submitted 1 year ago by to c/asklemmy@lemmy.world
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[–] 1 point 1 year ago (1 child)

Tax laws are usually made to make it easy to collect, hard to dodge taxes.

If companies pay all the tax I could create a company, invoice my current employer, pay myself a salary that is equal to the entire profit margin. There is nothing left to tax.

You could try to patch the loophole but then you'll break down something else.

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  • [–] 1 point 1 year ago

    That sounds backwards to me. If companies are paying all the taxes, why would you insert a second company into the chain? Then both companies would be paying a tax portion, and your salary would be that much less than if you just had a job.

    Or were you thinking that you could bamboozle the government out of the tax revenue by saying "Oops, no profit! Salaries cost too much!"? I don't think that would work unless the entire structure was built with one directive in mind: "Reward Hollywood accounting"

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