The Oil Drum

50 comments on The SUV disease spreads

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Glenn on October 4, 2005 - 2:21pm

I think the issue is that you have more control over how you spend that money. Anything that could be a dual purpose - conference at a resort for instance - goes in as a business expense and does not get taxed. It is an inducement to overconsume if you can book the expense as a business expense.

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Stuart Staniford on October 4, 2005 - 2:36pm

I agree those incentives exist.

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Southsider1 on October 4, 2005 - 8:20pm

I've been responsible for the finances of a Subchapter S corp. owned by a small circle of individuals. Sure, business expenses are pre-tax, which means, depending on your bracket, you save roughly a third versus post-tax expenses. But they're still expenses, and any good business person strives to minimize unnecessary expenses. I've never seen an instance in which we spent money simply because it was "deductible."