Uber has never once turned a profit, and is allowed to continue running their business. If you’re a small business owner running an ebay or ecom business, and you claim losses for 3 out of 5 years in a row, it’s likely that the IRS will audit you, and could deem you a hobby. Amazon is often cited as not generating a profit for many years, but is now profitable. For them, it was somehow okay to run a business making no profit! So like, how come small businesses can’t claim losses, but big corps can?
Are there any negative consequences? I’d prefer to be downgraded to a hobbyist. Instead, the government has increased my taxes to around 70% of my yearly revenue. Social democracy, fuck yeah!
70%? The fuck? What do you do for a living/do you have an accountant? That doesn’t make any damn sense. Like truly I do not understand how this is possible. I’ve been a freelancer and a small business owner and even in my worst years I didn’t come anywhere near 50%, let alone 70%
Truly this just sounds like you are way overpaying. Do you get a sizable tax refund? Do you live in a state that has some sort of crazy law you fall under?
Well, I fell into a bracket that’s taxed (it’s not officially called a tax, but that’s what it is) by a certain fixed minimal amount. Thanks to my total revenue being relatively low, it makes an absurd amount percentage-wise.
That doesn’t really tell me anything and it doesn’t really sound like anything I’ve heard of. What exactly are these tax policies you’re falling under?
And it’s not tax policy but functionally is…? So it’s not actually a 70% tax rate? What are you talking about?
In the USA, there are tax breaks regarding expenses. A big one is that, because the USA does final sales tax instead of VAT, a business can buy goods without paying sales tax as long as they aren’t the final point of sale.