What exactly business are taxed on varies a bit from state to state, but for a tax on “profit”, which is the most common in the US, wages are definitely deductable from revenue to get the “profit” for a given period.
Walmart and Amazon would pay a hell of a lot more tax if they couldn’t subtract the wages they paid to their employees and contractors from the money that comes in the door when calculating their tax bill.
Maybe note that Wages arent like office equipment, in that there’s no asset to plausibly be sold to recoup a purchase price?
(This isn’t directly my area of expertise either, but I have a hard time thinking of a tax scheme that would allow deducting the cost of an office chair rented for an employee but not the wages paid to her.)
What exactly business are taxed on varies a bit from state to state, but for a tax on “profit”, which is the most common in the US, wages are definitely deductable from revenue to get the “profit” for a given period.
Walmart and Amazon would pay a hell of a lot more tax if they couldn’t subtract the wages they paid to their employees and contractors from the money that comes in the door when calculating their tax bill.
Maybe note that Wages arent like office equipment, in that there’s no asset to plausibly be sold to recoup a purchase price?
(This isn’t directly my area of expertise either, but I have a hard time thinking of a tax scheme that would allow deducting the cost of an office chair rented for an employee but not the wages paid to her.)