Quote:
Originally Posted by Sliver
Because then you're adding to your net profit and getting taxed on the net. This way you put that money into the economy to your own benefit and the benefit of somebody you want to please. Sometimes if you have a great year it's good to lower your net by spending the money versus declaring more net. This encourages you to spread earned money around the economy.
So fotze gets drunk with Mr Coffee. Seems a little unfair, I get it; however, they employed a ticket sales guy, a parking guy, a security guy, a brewery, the guy who delivers the beer, a janitor, the guy who stocks urinal cakes, the uber driver, etc etc.
Every dollar spent because somebody was grabbing a write off is employing people. It's nothing but good for the economy.
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Not saying it's wrong on the overall principal, but in a funny way this kind of adds to market momentum both positive and negative. By this logic If businesses on average are having a strong year, presumably it is on the back of a strong economy. Then they are more likely to spend money fueling the economy, which re-enforces a strong economy. The opposite could happen too, businesses are suffering in a weak economy, they then cut the client event, further leading to softening (less work out there for a ticket sales guy, a parking guy, a security guy, a brewery, the guy who delivers the beer, a janitor, the guy who stocks urinal cakes, the uber driver, etc etc. who now spend less in their day to day lives)
Just interesting how it contributes to negative feedback loops.