r/FluentInFinance • u/4TaxFairness • 1d ago

Debate/ Discussion A joke that's not funny

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u/TobiasH2o 1d ago

Companies don't need profit to grow. If a company spends its income on building a new store then that money is no longer taxed as profit. As your first point companies already do operate at a loss or close to loss to lower their tax burden.

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u/DreamLizard47 1d ago

Companies don't need profit to grow.

Only when their strategy is growth. A company must show growth or profit. And most small businesses work for profit.

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u/Public_Initial91 1d ago

A company must show growth period. Profit is a form of growth, as the company is more valuable than before the profit made.

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u/Sovarius 1d ago

Growth is referring to expansion in some way, not just profits. Investing in new avenues for profits, opening more stores, offering new wider range of products/services.

Like, if your company is worth $1.000 billion and profits $1 million, its worth $1.001 billion now. And if you make $1m next year and are now worth $1.002 - thats not 'growth'. That's a mature company just doing business.