If their costs are greater than the tax they pay, how come business can’t effectively pay 0 tax by righting off all these costs as a business expense?
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Tax deductions count against taxable income, not the total taxes paid. Businesses do deduct all of their expenses from their income, they only get taxed on the difference, which is profit. If your expenses are more than your income, you made no money and don’t pay tax. There are ways to deduct more from your income, e.g. deferring losses from one tax period to another.
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