Reply #99: essentially, any time money changes hands there is a tax [View All]

[TorchTheWitch]

Sometimes on both the one handing it over and the one receiving it. A businesses profits are it's income, just like your salary from your job is your income, profit that you make in investments is your income, and anything else where you derive a monetary gain from.

Look at it this way... your profit for your labor comes to you in the form of a salary. From that profit you pay your mortgage, utilities, insurance, etc. to entities for the various goods and services you need, yet you pay taxes on that profit for your labor even though most if not all of your profit is going back out to pay for the things you need. A business ALSO pays out of their profits (the businesses income) to pay the salaries of the employees, mortgage, utilities, insurance, etc. just as you do... why SHOULDN'T they pay taxes on their profit just as you do on yours?