Skip to content

Taxing Income Before You Earn It

Spread the love

Smith Spendthrift 1024x371

COMMENT: Hello Martin;

I trust you and the state of Florida are healthy, hurricane or not.

As to the German VAT pre-pay system, Ontario, Canada tax laws shocked me nearly 30 years ago with income tax on accounts receivable, whether collected or not.

I was 22 years old when the accountant came to review my 1st year as a proprietor. He stated that even though one of my customers had not paid his account I was to pay income tax on that amount. But the amount owing to me was nearly 20% of my annual sales! He told me if I did not receive the customers payment I could write that off next year. I said if that guy doesn’t pay there won’t be a next year.

So of course I changed my gross sales. The bastards force people to break the law.

Get used to it Germany, the gopher-ment just keep digging.

Thank you sir, this is the best education for $14.99/month. ($18.56 CAD);


REPLY: Yes. This is exactly as Adam Smith wrote. Government is always the crazy spendthrift who spends money before they get it so they try to treat the people the same way. In the USA, if you make $100,000 trading and pay the tax and then lose the $100,000 the following year, you cannot write off the whole loss. Government and taxes are just unrealistic because of their greed.