I've seen this "get a better accountant" argument posted on HN quite a bit. But, aren't liberals outraged about the tax loopholes for the "weathly"? We shouldn't need the loopholes, just reduce the rates.
No, not in this case. It’s very deliberate that companies pay tax on profit, not revenue; it’s not really a loophole. This gives the company an incentive to put the money into growth rather than taking profit and paying dividends, especially when it’s smallish.
You could theoretically have a system where companies pay tax on revenue, but realistically it’d cause massive upheaval and greatly disincentivise starting new businesses and growing current ones.
No. Hiring competent accountants to help you run your company more efficiently is good. What people have an issue with is when the ultra-rich hire accountants who specialize in tax avoidance.
You should pay your fair share of tax. You shouldn't pay way more tax than you need to just because you're doing your own accounting badly or because your accountant is a moron.
A good accountant will do a lot more than deal with taxes. They'll point out how you can better finance your operation, how you can capitalize on assets you have to save on interest costs.
Managing cash-flow, expenses and accounts receivable is a very important job. If nobody's paying attention to this you can run your company aground without even knowing it.
So what I mean is if your accountant can't handle basic tax code, your accountant needs to be fired and replaced because you're probably getting killed in other departments as well.
