Law
Taxes
Fox News Channel
Congress
Responses: 3
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I agree with the LAWSUIT theme, but think it should have a lower limit of 20 Million.
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Why should it not be deductible? A company pays taxes on its profits. A lawsuit reduces profits. That is money they DID NOT MAKE that year.
I own a second home. I rent it out as a business. I make approx $12000 / year on it (just over $1000 / month after expenses). If, during that year, I need to install a new septic tank to the tune of $6,000, then I have only made $6,000 that year. The fact that I got paid $$15,000 in rent is irrelevant. I only MADE $6,000.
If a company takes in $1M in a year, but had $900K in expenses, they only MADE $100K. If they take in $5B but have $4B in expenses, they made $1B and should be taxed on $1B. If the following year they have the same intake and expenses, but also lose $500M in a lawsuit, then they have only made $500M - and that is what they are taxed on.
The only way this would be any different is if you make the claim that legal expenses are not legitimate business expenses. In which case NO legal expenses are. For any company.
This is just another case of trying to find ways to tax wealth. Only the people with BIG settlements must pay - because only the people with a lot of money have the big settlements.
That isn't equality or even equity. It is jealousy.
I own a second home. I rent it out as a business. I make approx $12000 / year on it (just over $1000 / month after expenses). If, during that year, I need to install a new septic tank to the tune of $6,000, then I have only made $6,000 that year. The fact that I got paid $$15,000 in rent is irrelevant. I only MADE $6,000.
If a company takes in $1M in a year, but had $900K in expenses, they only MADE $100K. If they take in $5B but have $4B in expenses, they made $1B and should be taxed on $1B. If the following year they have the same intake and expenses, but also lose $500M in a lawsuit, then they have only made $500M - and that is what they are taxed on.
The only way this would be any different is if you make the claim that legal expenses are not legitimate business expenses. In which case NO legal expenses are. For any company.
This is just another case of trying to find ways to tax wealth. Only the people with BIG settlements must pay - because only the people with a lot of money have the big settlements.
That isn't equality or even equity. It is jealousy.
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