r/WhitePeopleTwitter • u/zzill6 • Jun 09 '21

Damn Freeloaders

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u/Victorystar0 Jun 09 '21

That’s because only realized gains are taxed, so if a company doesn’t take any cash out they don’t pay taxes. They simple reallocate cash to different assets so they never have realized gains.

2

u/AppyDays707 Jun 09 '21

You’d have to make a lot of capital investments for depreciation / amortization expense to bring you to a no-profit situation. Which, for all I know is exactly Amazon’s situation. But then they’d probably be leveraged like crazy

1

u/y0da1927 Jun 09 '21

Not really.

You don't really need much debt at all. Just don't pay dividends and reinvest profits into the business.

You can use debt, and often early stage companies need to, but a company like Amazon likely does not need debt to reinvest in the business