Happy Labor Day! According To The Government, Your Labor Is Worth $0.Submitted by Marc Clair on Mon, 09/03/2012 - 20:50
Liberty breaks for nothing, even Federal Holidays that are supposed to honor the “labor” of the working man. Of course, if the government really cared about honoring the working man, it would value the labor of that man at more than $0. Yes, that’s right, the government values the labor of individuals at $0.
Since income is not even clearly defined in the Internal Revenue Code or the Income Tax Act, we have to look at how the tax is applied to understand what “income” actually means. When corporations pay income tax, they are are paying taxes not on actual income aka revenue, but only on the gain derived from that income, known as profit. This is why major corporations can have millions of dollars of incoming money, yet pay no income tax whatsoever. None of the money a corporation spends on resources, workers, real estate, etc. in order to create their final product are taxed, merely what is left over. So for corporations, the income tax is really a profits tax.
The same cannot be said for the unfortunate individual however. Individuals pay taxes on all of the money they earn, with very few exceptions for certain items that can be considered “business expenses”. If an individual works all day and makes $100, he is taxed on that entire $100. What this says is that the government considers that entire $100 to beprofit, which means they are effectively valuing the labor that went into creating that profit at $0.