So providing tax loopholes and bogus deductions keeps us free?
I understand all taxes are paid by the end user. I wish there were no taxes!! I just know that the system is flawed when a working person pays taxes and businesses and corporations pay near nothing at all.
That's not what I said at all. I made no comments on "loopholes" nor invalid deductions. I just asserted that your proposed solution make make things worse, much worse. Additionally, you acquaintance selling King Camo needs to talk to a real accountant. In order to write off a business as a business expense, it's "primary purpose" must be business. Even if Camo guy had sold a few pieces, business was not him primary purpose, so it's not a valid expense. We can also imagine the other end of this spectrum where he packs a U haul full of stuff to sell it at a gun show in the next state. even if doesn't sell a single item, he can still write off his travel expense because is primary purpose was selling stuff.
As for the tax burden's that cause you to throw parts away, I have to wonder from where you sourced them?
As I mentioned before Mexico, along with virtually all of Latin America has VAT taxes. Another effect of there taxes is NO ONE WILL GIVE YOU A REFUND. The reason being, the seller has already paid taxes on the sale, and if you they take the parts back, it's about impossible for them to get their taxes back from the government. Consequently commercial differences are typically settled with credits and seldom with an exchange of funds. It's likely you had to throw those parts away not because of intricacies of the U.S. tax code, but due to the consequences of a system like the one for which you are advocating.
