Example: My company makes 100M in revenue. To sell my goods, my cost is 99M, I only have 1M in profit. If I were taxed on my 100M revenue, I would just lose money and my business would have no point and I would have to close even though I am profitable. If it costs me 99M to sell 100M worth of goods, why wouldn't I be taxed on the 1M?
Why should two companies who have 100M in revenue at 99M costs vs 15M costs to pay the same taxes?
Why should two companies who have 100M in revenue at 99M costs vs 15M costs to pay the same taxes?