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%)
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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.
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