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Originally Posted by dude1394
Do you believe that you should get a tax break for your mortgage? Or that if you invest all of your profits (legally) back into the business that you should pay taxes on those profits?
Your use of the word "fair" is the misnomer here and it's used by illogical people talking about taxes. They are taxed at "x" rate, they (like you) use the tax code to invest in capital that the guvment feels helps them grow their business, ergo...they allow them to take that off their profits.
Would you rather they NOT re-invest their profits so that the guvment could tax them more and they would hire less people?
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you are making a huge assumption that these corporations who paid zero taxes on their profits "re-invest[ed] their profits".
more than likely they used some loophole (ie an obscure regulation in our complex and abused tax code) to avoid paying the taxes that they otherwise would owe.
these rules allow for writeoffs and increased depreciation of assets to shelter the net income from the taxman. while investing is good for the continued viability of the businesses, it's pretty inconceivable that these corporations truly reinvested their total net income in the tax year.
we have an effective tax rate on businesses that is less than half of the stated tax rate. we need to clean up the tax code to be more effective and transparent in how businesses are taxed. that would indeed make the tax policies more FAIR to both all businesses and to individuals who would otherwise bear the burden of taxation.