You receive $500 a month from the government in SNAP benefits ($6,000 a year).
If you earn more than $20,000 in the year you have to pay back $3,000 of your SNAP benefits within 90 days or risk going to jail.
It turns out you're going to make $21,000 this year. So you get a small business license ($600). Now you invest $500 in your business for equipment that will only be used for the business. You've just invested $1,100 in your business that you get to deduct from your income.
You: $21,000 - $1,100 = $19,900 = You don't have to pay back the $3,000. So you just invested $1,100 so you don't have to pay back $3,000 which means you just SAVED $1,900.
Your business on the other hand has to spend the money you invested, but your business has no customers. Your business spends the $500 on an old laptop. Your business just lost money for the year ($500).
So you invested $1,100 in a business that lost money so that you wouldn't have to pay back $3,000.
This is very oversimplified but basically how our tax code works. And guess who helped write a lot of that tax code over the last 47 years? Joe Biden and Nancy Pelosi.
You receive $500 a month from the government in SNAP benefits ($6,000 a year).
If you earn more than $20,000 in the year you have to pay back $3,000 of your SNAP benefits within 90 days or risk going to jail.
It turns out you're going to make $21,000 this year. So you get a small business license ($600). Now you invest $500 in your business for equipment that will only be used for the business. You've just invested $1,100 in your business that you get to deduct from your income.
You: $21,000 - $1,100 = $19,900 = You don't have to pay back the $3,000. So you just invested $1,100 so you don't have to pay back $3,000 which means you just SAVED $2,900.
Your business on the other hand has to spend the money you invested, but your business has no customers. Your business spends the $500 on an old laptop. Your business just lost money for the year ($500).
So you invested $1,100 in a business that lost money so that you wouldn't have to pay back $3,000.
This is very oversimplified but basically how our tax code works. And guess who helped write a lot of that tax code over the last 47 years? Joe Biden and Nancy Pelosi.