Not directly related to the title topic, but I i thought I should share my perspective as an economics student:faceless wrote:I've been thinking about the people who profit a lot from company expenses in private contracts. They say that this is ok because they're not taking money from the public purse. Thing is though, if the company wasn't dishing out all that expense then that money would be counted as part of the company's profit, meaning that it would be taxed at the normal corporation tax level.
So they are taking money from the public purse. I wonder how many of the ones who are so up in arms about this whole thing would be prepared to give up their perks?
It will not be possible to monitor those things and then propose tax on those expenses since the management and inspection of those costs will probably be pretty high. Another thing to add here is that almost every government has huge amount of waste in various forms (corruption, mis-allocation, wars, moral hazards of many forms, etc). So no matter how much a government gets as tax revenue it will never be able to solve the problem.
