Macedonia’s Economy 2008 – Dialog with Dan Doncev

I often hear the opinion expressed that businesses, property
owners and “rich people” do not pay their fair share of
taxes. And I agree. I agree that they don’t pay their
“fair share” as defined in most people’s minds. But I also
think that in certain free tax software canada circumstances, these businesses and
people shouldn’t have to pay any taxes.

That may sound a bit radical for many people reading this,
but allow me to explain my reasoning.

First, why are we taxing businesses on their profits?

A business exists, whether it is a sole proprietorship or a
large international corporation, to make a profit. People
create businesses and invest in stocks with the idea that
they will get a share of the profits. This is the basis of
our system of capitalism. It is the motivation for a free
marketplace and private ownership of property.

Why would anyone go to the trouble of starting a business
unless they expected a significant return on their
investment of money and time? Why would you bother buying
stock in a company if the company never gave you any
dividends (yes, stocks can appreciate, but bear with me)?

There comes a point when deciding where to invest your time
and money that you have to figure out how much return you
need to make your effort worthwhile. If you work at a job
and earn $30,000 a year, how much will your business have to
make to replace your income? How much more do you want it
to make for taking the risk of quitting your job and
building a business?

If you can’t make much more than the $30,000, it hardly
seems worth it to spend all the extra time and take the
extra risk of starting the business. So let’s say that you
figure you can earn $50,000 with your business. And that is
enough to take the risk.