I have income and I have costs. Why is my income not completely offset by my costs? I'd love to spend more money to pay fewer taxes. My labor is turned into profits for my employer and similarly their profit is eventually taxed. In that sense my labor doesn't have to be taxed directly either. Why is it? I think it's absurd that one the hand they are reporting revenue to shareholders and on the other hand they are reporting no profits to tax authorities. Am I misunderstanding something here? I think it's an arbitrary choice that people are supposed to pay for the expenses of the state and corporations are not. I don't think that's a good choice, but that's partially subjective.