Expectation Tax

Discussion in 'Current Events' started by indago, Dec 1, 2008.

  1. indago
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    indago VIP Member

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    Journalist David W. Chen wrote for the New York Times 30 November 2008:
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    New York City, grappling with the aftershocks of the global financial crisis, has been forced to refund more than $800 million to companies that overpaid their taxes this year based on expectations of a more robust business performance.
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    Now, if that doesn't just add another absurdity to the many absurdities I have seen so far in my lifetime: paying a tax on an "expectation": AN EXPECTATION TAX. Next thing you know, governments will demand that all monies to be paid to a company or corporation be sent to government instead, and the government will run the business as it sees fit.
     
  2. editec
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    editec Mr. Forgot-it-All

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    Expectation taxes are a long time tradition of the government.

    Companies pay taxes quarterly based on their expected outcomes over the course of a year.

    Usually the adjustments are no big deal EXCEPT when, as in this case, the economy melts down so badly that the company's bottom line is way way way lower than anyone imagined.

    This is, just in case you all still don't get it, anyone example of just how bad things really are.
     
  3. indago
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    indago VIP Member

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    editec wrote:
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    Expectation taxes are a long time tradition of the government.
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    Well, I believe that "expectation taxes" should be abolished, and there should be taxes on something real.
     
  4. editec
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    editec Mr. Forgot-it-All

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    You're not alone in that belief.
     

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