[akoboldfrying]

> you don't pay taxes on profits, but on revenue.

That can't be right. It definitely isn't in my country.

If own a car dealership, and I sell a car for $50,000 that I bought from the manufacturer for $40,000, surely I would pay tax on the $10,000 profit? The tax on the the full $50,000 revenue might exceed my profit!

[billy99k]

Welcome to the Democrat version of taxes. In Michigan, restaurant owners had to pay a tax on revenue and not profit around 2008 or so.

lots of retaurants went out of business overnight.

[int_19h]

When taxes are paid on revenue rather than profits, the rate is obviously much lower, so that it would add up to roughly the same thing.

However, there are many benefits overall. For one, it completely kills off the various convoluted schemes to avoid classifying something that is obviously a profit as such (by shuffling things around subsidiaries etc, for example). See also: Hollywood accounting.

[hollerith]

Sales tax (which most US states collect) specifically is a tax on revenue, but it is the exception.