Why are business expenses deductible from income, but someone’s basic living expenses aren’t deductible from personal income?

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Why are business expenses deductible from income, but someone’s basic living expenses aren’t deductible from personal income?

In: Economics

22 Answers

Anonymous 0 Comments

That is why the first x amount per year (depending on where you live) is usually tax free income.

Otherwise everytime you would buy anything you would have to get a bill to prove that you had these expenses and that would be a lot of work for both you and the tax authorities so its just easier with a fixed amount.

The problem is the fixed amount hasnt realy kept up with basic living expenses. But poor people dont have enough political influence to make either rich people or businesses pay more to make up for it.

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