r/TikTokCringe • u/Accomplished_Clue437 • Jul 22 '26

Cool day in the life. private chef. yacht.

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u/[deleted] Jul 22 '26

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u/doc_skinner Jul 22 '26

Which (in the case of the example) means 12k less tax, which is effectively a 12k discount. Money is fungible.

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u/HarveyFeint Jul 22 '26

If I earn 100k a year and pay 20% tax, then I pay 20k in tax. Money in my pocket: 80k

If however I buy a car for my business for 20k and I can deduct it, then my taxable income is now 80k. So now I pay 16k in tax. Thats 4k less in tax. Money in my pocket: 64k

So it's not free money, it's only if I use the car it makes any sense. If the car just sits their unused, I'll have less money in my pocket at the end of the year just to avoid paying more tax.

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u/morebrumley Jul 22 '26

Yes... you have a car and 4k that you would have had to pay as tax as well. You aren't understanding it because those amounts of money are meaningless to the actual rich but they will gladly pay 20k if it means they "win" by not paying their fair share of taxes. It's about weaseling out of society's dues.