[sokoloff]

One of the largest* tax deductions comes from the paying of people’s wages for jobs. That’s a tax deduction where the economic benefit of the overall transaction goes much more to the wage recipient than to the entity taking the deduction.

It seems unreasonable for employers to not be able to deduct that amount and for the government to somehow pay them a fraction of what it costs to employ people.

* - I suspect it’s the largest overall, but didn’t have time to do the research to satisfy myself that it’s the single largest, but it’s clearly one of the largest.

[gruez]

> One of the largest* tax deductions comes from the paying of people’s wages for jobs. That’s a tax deduction where the economic benefit of the overall transaction goes much more to the wage recipient than to the entity taking the deduction.

To be fair it's not wages that are benefited specifically here, it's business expenses in general. If anything, wages are treated worse than other expenses (eg. buying a printer), because they're subject to payroll taxes. As for why expenses are deductible in the first place, that's done for a good reason as well. If you don't do that, you end up taxing x% for each step in the value chain, which would give huge tax benefits to conglomerates (which own the entire value chain) compared to small businesses.

[sokoloff]

I totally get that; I was pointing out that people often think "I arrange my finances properly and use deductions correctly/as-intended and all these other assholes are taking advantage of tax loopholes. (Things I use are proper deductions; things others use are disgusting loopholes.)"