Originally Posted by
brooklynmatt
Nice. That is what you got from all that?
The employee should pay the tax on wage, but the company shouldn't pay taxes on the income if they are already paying out the employee.
It is what we call NET profit or loss.
If they had to both pay taxes the system would be untenable, and the company would become bankrupt.
You are confused on terms again, which is why your example made no sense. I see now that when you say "income", you actually mean "revenue". These are not the same thing.
Pointedly, the government does not tax revenue.
More pointedly, this line of the thread is way way OT.