========================================== Are any of America's major corporations earning an honest profit, or all of them depending on the smoke and mirrors of book cooking, corner cutting, angle playing, tax evasion and pension fund fraud to show even a paper profit?
This is yet another example of how the IRS plays fast and loose with the regulations when big business is involved. Under the IRS code, you own income tax on *ANYTHING* of value you receive.
The IRS appears to have no problem tracking the "tips" of the wait staff and your barber/hairdresser and collecting. The value of these tips is even used to offset the minimum wage that must be paid.
Operationally, the businesses are receiving a zero cost loan that does not appear on their books (although the face amount payable should appear under "accounts payable"). [Enron anyone?] Note that this is not "free" money because the vendors most likely have had to borrow at high interest.
What should be occurring is the IRS calculates the amount of interest for these "loans" at the higher of the maximum legal interest of the vendor's or the purchaser's corporate domicile and assesses accordingly for value received. The use of the "credit card" interest rate is justifiable in that the corporations engaging in these practices generally have "junk" credit ratings, and in any event are coercing/extorting the "loans."
Yet another example of the distortion of the free market by excessively powerful [large] corporations, and more hidden subsidies. Thanks for reminding everyone of another layer in the corporate worlds "house of cards."
If you look at history you'll find that no state has been so plagued by its rulers as when power has fallen into the hands of some dabbler in philosophy or literary addict.
Desiderius Erasmus (c. 1466-1536), Dutch humanist. Praise of Folly, ch. 24 (1509).