196

16721 readers

2481 users here now

Be sure to follow the rule before you head out.

Rule: You must post before you leave.

^other^ ^rules^

founded 2 years ago

MODERATORS

[email protected]

520

Look up "Microsoft Recall" rule (lemmy.blahaj.zone)

submitted 7 months ago by [email protected] to c/[email protected]

80 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 1 points 7 months ago (1 children)

Guess I misunderstood the terms, then. I also thought corporations were taxed higher, is that not the case?

[–] [email protected] 3 points 7 months ago* (last edited 7 months ago)

I wouldn't say higher but it is definitely different.

You might need to pay more tax because of double taxation. You are your own entity and the corporation is also an entity. This means that the corporation has to pay taxes on profits and you also have to pay taxes personally on the salary/dividend that you recieve.

But there are also other tricks to reduce or optimize taxes like tax reduction on business expenses.

When you're a business owner, you can usually optimize to pay the least amount of taxes possible with the help of an accountant. Things that you have less control when you're an employee.

When you hear large corporations and rich people not paying much taxes (if not at all), some are just being smart with their business and accountants.