Matt1970
Lifer
- Mar 19, 2007
- 12,320
- 3
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I thought that was happening to the Marijuana businesses in Colorado and there was a thread about liberals whining about it?
Yep, can't have deductions from an illegal venture.
Lets say all businesses couldn't claim any deductions. I buy a laptop from Toshiba for $100 to resell. I want to charge a modest $200 since $100% margin in an any business is excellent. Do I get to take $100 home in profit? Nope. That $200 I take in is taxed at 39% Fed and up to 11% State. Baring any other taxes I might actually lose $2, on a 100% markup. I still haven't paid any utilities, employees or anything else. A lot of businesses work off a LOT tighter margins with deductions, so you can expect prices to atleast triple.