Comment by jakear
3 years ago
Isn't the simple solution to just not give away all of your revenue before you pay your taxes?
The two constants are death and taxes, if you don't have the revenue to pay them at your current burn rate, you either find a way to burn less or your company just isn't viable.
The idea of corporate taxes is to tax profits, not revenue
Which just ends up with corporate accountants structuring the books to minimize "profit".
I for one can't find it in me to get all that upset about startups paying their fair share of taxes instead of artificially inflating salaries to consume all of their "revenue", thereby hoarding talent away from the labor pool that would likely better serve the country as a whole by working in... really anything besides risky chronically unprofitable startups.
Why are you so hostile to startups? Maybe if you could articulate what small software companies are actually abusing when they offset their revenue with wages like literally every other industry out there I could start to understand your viewpoint.
But without that you just seem like you have a chip on your shoulder.
You do understand that if this law were applied to any industry it would similarly kill small companies in those? Like if restaurants had this rule for wages it would devastate smaller, family run restaurants.
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What's wrong with paying employees more? Income tax is a thing and that's on revenue, not profit. You'll get a bigger cut of that then other expenses. And a bigger cut of that than equity comp and share buybacks where that's cap gains. Income is great!
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