There is probably an explanation for this, but this is one of those sentences that makes one giggle. From NPR:
"If Google paid taxes at the full 35 percent rate on all of its profits, it would lose almost a quarter of its total profits," Bloomberg reporter Jesse Drucker tells weekends on All Things Considered host Guy Raz.
35 percent is the new 25 percent.
3 thoughts on “Tax code”
So if I make a pre-tax $100 profit,
and I pay 14% taxes I come out with total profits of $86.
But If I paid taxes at 35% I would come out with $65 total profits, which is $21 dollars less total profit than at the lower tax rate. I assume this is what is meant.
$21 less, which is of course about 25% of my 'original' total profits.
The underlying thought is really deep and complex: "If a profitable company pays more in taxes, it will have less profit." I wish I could come up with insights like that one.
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