If you receive 10K USD as income one month, you would pay tax on that and then be able to buy things
If your business received 10K USD it could buy all sorts of things before declaring a profit and paying tax only on the profit.
If you receive 10K USD as income one month, you would pay tax on that and then be able to buy things
If your business received 10K USD it could buy all sorts of things before declaring a profit and paying tax only on the profit.
And regardless, that's not really a carve out for the wealthy, that's just a policy we have because we think it encourages business growth, which is generally a good thing.
If the business is buying it, then sure you can. There's limits on this for sole proprietors as the tax authorities will argue that the businessman who bought a yacht "for the business" only ever uses it for himself.
But the rich folk, who have 20% of the company (the largest share, usually), can force the company to buy a yacht where use is limited to that single shareholder ... once again proving that the rich would pay less tax than the poor.
Find yourself an accountant. They will show you how to set it up. It is also usually decently complex enough to be a pain to do in the day to day running of it (hence the accountant).
Also up above I said 'long term low inflation' can hurt? Look at what is going on and you can figure out why suddenly we have lots of it. Think about borrowing at 2-3% and inflation is 5%.