Trickle down is bullshit

Jiggyfly

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I guess you didn't read the part where this addresses wages and benefits not profits. Why do you even bother to post things that are not relevant to the issue?

It also leaves the issue to the owner to decide not employees.
It did address profits.

Everything in there is relevant to the issue I can't help if you ignore it or did not read it.

Yes the issue is up to owners they should not be hell bent on profits at all cost it hurts the overall economy.
 

Jiggyfly

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In addition I see I am going to have to go simplistic again to make the point.

First of all accounting principles prohibit profits being shared by anyone except ownership. If an owner pays profits to anyone other than ownership they will be paying the taxes as well and take a double hit.

Owners can declare benefits and wages with increases to employees and charge them as expenses to the business but they cannot share profits with employees unless the are part of ownership. If there were other owners or stockholders they could bring legal action for such an act as giving their profits to non ownership. Anything given to an employee must be done before profits are declared because once declared they are the sole property of ownership.

By accounting and by law profits cannot be distributed to anyone other than stockholders or owners without penalty of taxation or riskof civil litigation.

So simply stated owners are not allowed to share profits with employees. They are only allowed to pay wages and benefits before profits are declared. Profits belong to ownership.
So much bullshit most companies have profit sharing and some have bonus programs all of them can be tweaked to boost employees incomes .

Or you know they could just increase wages but I guess that's against the law as well.

Man you are making no kind of sense.

http://www.salary.com/types-of-bonuses/

There are several types of bonus programs. Some plans simply give employees a certain share of the company profits (current profit sharing), regardless of the performance of individuals or teams or perhaps a bonus to the entire company based on the company's performance (organization-wide bonus). Other programs give incentives to individuals (individual incentive) or teams (team incentive/small group incentive) to perform at or above certain thresholds. In some companies, manufacturing teams are able to share in the gains from improvements in production and quality (gain sharing). And a variety of cash and noncash awards are possible for certain types of achievements in some companies (spot bonus awards, noncash rewards). You can also earn bonuses for being hired or getting your friend a job at your company.
 

townsend

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How does they can afford equate to they should pick up someone else's obligation. That is such a lame ideology. Being able to afford doesn't in any way shape or form legitimize requiring some one to carry the load for someone else. It's a stupid way for some to try to deprive one from keeping what they have and giving up to another that should be carrying their own weight.

I guess I could go down to an expensive restaurant and tell them to charge my dinner to you because I am retired and you can afford to pick up my tab.
The rich are the chief beneficiaries of a thriving economy. By definition. Covering the tax expenses of the poor more than pays for itself, because that money pipes directly back into the economy that creates wealth for the rich. Poor people having enough scratch to make ends meet, means the businesses that can continue the employ them gets greater profits for their efforts, more dividends and stock value for the 1%.
 

L.T. Fan

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So much bullshit most companies have profit sharing and some have bonus programs all of them can be tweaked to boost employees incomes .

Or you know they could just increase wages but I guess that's against the law as well.

Man you are making no kind of sense.

http://www.salary.com/types-of-bonuses/
That is an expense charged to the company. Your ignorance of accounting is showing. Once the companies profits are declared that is what they are taxed on. They cannot expense it further. Don't even bother to respond because you are void of accounting principals.
 

L.T. Fan

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So much bullshit most companies have profit sharing and some have bonus programs all of them can be tweaked to boost employees incomes .

Or you know they could just increase wages but I guess that's against the law as well.

Man you are making no kind of sense.

http://www.salary.com/types-of-bonuses/
That is an expense charged to the company. Your ignorance of accounting is showing. Once the companies profits are declared that is what they are taxed on. They cannot expense it further. Don't even bother to respond because you are void of accounting principals. I wonder how much accounting you have actually been exposed to.

All employee wages and benefits are charged as expense items including profit sharing accounts. Net Profits are what is left after all expenses have been charged and this is the amount that the company is taxed on. If it is a corporation it becomes either retained earnings or is paid in dividends to the shareholders. If it is a propriety business with one or more owners this prorated amount is what is taxed to each owner. In either case this amount cannot be further expenses unless it is turned back to the company as a capital contribution. In the case of a corporation it becomes part of the capital structure of the corporation. That's a primer lesson.
 
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Jiggyfly

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That is an expense charged to the company. Your ignorance of accounting is showing. Once the companies profits are declared that is what they are taxed on. They cannot expense it further. Don't even bother to respond because you are void of accounting principals.

So just spew some gobblygook and then attack my knowledge when you have been shown to be utterly wrong.

Tell us again how it would be against the law for employees to share in the profits.

Now it's accounting principals.:lol
 

L.T. Fan

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So just spew some gobblygook and then attack my knowledge when you have been shown to be utterly wrong.

Tell us again how it would be against the law for employees to share in the profits.

Now it's accounting principals.:lol
Accounting principals are how you determine profits you goober.
 

L.T. Fan

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Accounting principals are how you determine profits you goober.
It is against the law to give someone else's property away. It's not rocket science. If there are two owners to a company and after expenses the company made $10,000., each owner owns $5000. Neither owner can then say I declare that the employees deserve a Christmas bonus and I gave them $3000. without your knowledge so now you only get $3500. Can't do that because it is a misappropriation of funds of a partner.
 

Jiggyfly

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Accounting principals are how you determine profits you goober.
And profits are shared with employees without breaking the law stupid.

You made that idiotic statement own it.

You said.

First of all accounting principles prohibit profits being shared by anyone except ownership. If an owner pays profits to anyone other than ownership they will be paying the taxes as well and take a double hit.
Which is wrong.

How does Profit sharing work?

The company contributes a portion of its pre-tax profits to a pool that will be distributed among eligible employees. The amount distributed to each employee may be weighted by the employee's base salary so that employees with higher base salaries receive a slightly higher amount of the shared pool of profits. Generally this is done on an annual basis.
And then you said

Owners can declare benefits and wages with increases to employees and charge them as expenses to the business but they cannot share profits with employees unless the are part of ownership. If there were other owners or stockholders they could bring legal action for such an act as giving their profits to non ownership. Anything given to an employee must be done before profits are declared because once declared they are the sole property of ownership.
which is also wrong.

A profit-sharing plan is a defined contribution plan in which your employer has discretion to determine when and how much the company pays into the plan. The amount allocated to each individual account is usually based on the salary level of the participant (employee).

Your employer's contributions to your account, and any investment earnings, accumulate on a tax-deferred basis--the IRS will tax these benefits as part of your regular income only when you begin receiving distributions from the plan,
The employee pays the takes on the profit that is given not the employer.

And oh look here an example of a company doing exactly what I am advocating for.
http://www.detroitnews.com/story/business/autos/ford/2015/01/29/ford-issues-profit-share/22565297/

Ford's profit-sharing checks are calculated by a formula that rewards each hourly worker $1 for every $1 million earned in North America. The formula was developed as part of contract negotiations between Detroit's automakers and the United Auto Workers in 2011. Individual check amounts are based on number of hours worked; it could be more or less than $6,900.
 
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L.T. Fan

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Since you don't know the difference in pre tax profit and net profit, it's pointless to go any further on this topic with you. All the items you are listing are expense items before net profit are determined. Just stop and say no more to spare yourself further embarrassment. You simply do not understand how net profits belongs to only ownership and cannot be further expensed. It can only be taxed as earnings or be capitalized back into the business.
 
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Jiggyfly

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It is against the law to give someone else's property away. It's not rocket science. If there are two owners to a company and after expenses the company made $10,000., each owner owns $5000. Neither owner can then say I declare that the employees deserve a Christmas bonus and I gave them $3000. without your knowledge so now you only get $3500. Can't do that because it is a misappropriation of funds of a partner.
I never advocated doing anything like this, that scenario has nothing to do with anything I said.

I see you are just going to dig this hole deeper and deeper.

I give up you win.
 

L.T. Fan

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I never advocated doing anything like this, that scenario has nothing to do with anything I said.

I see you are just going to dig this hole deeper and deeper.

I give up you win.
That exactly what you advocated. You said the business should share the profits with employees. They cannot share net profits with employees if they are not owners.
 

Jiggyfly

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That exactly what you advocated. You said the business should share the profits with employees. They cannot share net profits with employees if they are not owners.
Who said anything about net profits that's the bullshit you threw in there.

Is this really the hill you are going to die on?
 

L.T. Fan

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Who said anything about net profits that's the bullshit you threw in there.

Is this really the hill you are going to die on?
I thought you quit.

Still don't understand the difference in pre tax profit and net profit? You threw out that example with your response. I just clarified it for you.
 

Jiggyfly

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I thought you quit.

Still don't understand the difference in pre tax profit and net profit? You threw out that example with your response. I just clarified it for you.
I tried but you keep throwing out this bullshit that is not relevant.
 

L.T. Fan

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I tried but you keep throwing out this bullshit that is not relevant.
Go back to your post where you bolded the term pre tax profits and see who is throwing out bullshit. You Google cut and paste then you forget who is the bullshit artist.
 
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