OUCH! MS has to write off >$6bn in Q4 to post a Q4 loss

[M.U.G.E.N]

Kasz216 said:

M.U.G.E.N said:

2. The way this could be a tax benefit is that, atleast a really significant one (keep in mind this is one of the biggest companies in the world, so their tax amounts should be pretty impressive as well) would be if this 6 billion amount of moves them down to a lower tax bracket (as in the more you earn the more % they tax you, so for example someone who earns 100k will get taxed 15% but someone who earns 99k only get taxed for 10%)

You have never paid taxes in your life have you?  That is not how taxes work in the slightest.

Taxes work on a graduated system.

If someone who earns 99 K will get taxed at 10%

Someone who makes 100K  will get taxed 10% on their 99K,  and 15% on there exrta 1K.

In otherwords, the person who makes 100K will still have more money post taxes.

"Dodging tax brackets" is a myth made by people who know nothing about taxes.

This 6 billon dollar "loss" means that they won't have to pay taxes on 6 billion dollars worth of profits this year.  Considering this was money spent two-three years ago.  It's really not a bad deal.

 

Also... coproations have a flat tax.  There are no "Corporation tax brackets" even if that was how tax brackets did work! (it isn't.)   It's all 35 percent of taxable income greater then $335,000 unless your a special "small buisness" corporation that puts you on the Individual tax bracket.

So in otherwords, Microsoft will save around,   $2,100,000,000 in taxes due to this writeoff.

blah nvm this is not gonna end if I do this