Hacker News new | ask | show | jobs
by polote 2080 days ago
it does actually, when you reinvest profit you don't make any profit.

They reinvest the money before it could become profit, mostly by hiring more sales

2 comments

Depends on what do you mean by "reinvest". If you have $1b in profits and build a $1bn factory you still have to pay almost the same taxes.

If you increase payroll in the current year by $1bn you won't make a profit and you won't pay taxes... but it may not be as good an investment.

Isn’t that exactly what the article is claiming they should do? Investing in sales and marketing now to drive future annuities isn’t the same strategy as reinvesting profits to dodge taxes as the OP claims