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by SilasX 2690 days ago
As I said in my comment on the Netflix tax thread [1], not necessarily.

Highly simplified example: if you spend $100 million over five years on inputs, all while receiving no revenue, and then sell your gargantuan output product (say, a mega-robot) in the sixth year for $100 million, then you haven't yet made a profit -- even though your books show a $100 million profit in the sixth year. Paying no taxes in that year would be reasonable.

If anything, my understanding is that corporate tax law is unusually harsh about such long-term projects, limiting how many years you can carry forward losses.

The specifics of how they got to $0 taxes matter, and not all reasons are shady. Some are, of course, like deducting arbitrarily high IP licensing fees to your foreign sockpuppet subsidiary. In that case, sure, hit 'em with both barrels.

But please, attack them for the right reason.

[1] https://news.ycombinator.com/item?id=19097415

3 comments

In my opinion, the philosophy of "specifics of how" has already been co-opted by tax dodgers. There is no way to have both enumerative, mathematical thinking and a sense of justice when it comes to taxes, because rich entities can always think of a tax dodge you didn't enumerate!

The reality is, no regular person is ever going to be on the wrong side of corporate taxes. You'll never be a huge corporation, you'll never be a huge corporate board, and since indexing, you'll never be a particularly aggrieved proxy shareholder.

Nobody really cares how "giant corporation pays the maximum tax it can bear" is arrived to, but that's what people want. It's different if it were small business owners or landlords. People also sometimes hate SBOs and landlords, but sometimes normal people are landlords and small business owners, so they can imagine being on the wrong side of justice there.

So like so many things technocratic thinking gets into, it's possible to be right and wrong at the same time. Right in the general case, in this imaginary case, where you just enumerate all the things, then you think hard about the things, and then you get the right answer. Wrong in the case that people in the real world actually inhabit, because you're both a likable person and you're not a giant corporation, so your philosophy is great to co-opt for what is basically a public-theft agenda.

This isn't a legal forum.

HN is a legal forum, a tech forum, a history forum, a knitting forum, and any other kind of forum that inspires knowledgeable posts by subject matter experts on topics the community finds interesting.

I agree that lobbying is a problem, but it's still important to distinguish between "corruption of the tax code" vs "stuff that makes perfect sense and would probably exist even if no one ever tried to corrupt the tax code for personal benefit".

"Not paying taxes when you haven't made up past year's expenses" is the latter. It should not be cited as an example of the former.

Certainly none of us will "be" huge corporations, since corporations are not human beings. But many of us are part of huge corporations, both as shareholders and employees.
Well certainly, if a bunch of other employees of other corporations can live a just and equal life, and those employer-corporations pay more than 0% tax, you can imagine that you can be part of a corporation that merely pays more taxes?
didn't know that info actually, as it's different here in Europe. I also see they had 91% in 2014 which is also interesting. Anyways wasn't really attacking them at all and also think the reason behind the 0$ is quite relevant in the discussion, yet I do strongly oppose the idea the original commenter made that amazon had been doing its fair share and square. They are doing whats best for them under what the law permits, including lobbying btw which uncertainly bends the laws to their favour. And the real debate in my opinion is, should it be possible this way ?
> Paying no taxes in that year would be reasonable.

I disagree. Make them pay taxes.

And under your system, what incentive is there for long term capital investment?