Unprofitable businesses of every sort don't pay income taxes. Startups like OpenAI don't pay income taxes because they don't have income. And investors don't get a writeoff merely for investing in a nonprofit; it's not like a donation to a nonprofit (which would be deductable).
Where is my $20/month for GPT-4 going then?
It feels like there should be a way to tax these startups that exist as vehicles for cash grabs, but are not profitable.
If I make $100 in a year and spend $1000 that year, my income is ($900). How can I spend $1000? Generally through loans and bonds. How do I secure said loans? Generally simply by showing how much VC and income comes in with a business plan that banks accept.
But that's the secret to the money flow. That's also partially why the collapse of SVB was such a blow to the tech industry. A LOT of loans were issued by them.
If you literally mean people (as in employees, executives, ect), they already are being taxed on income.
Unprofitable businesses always have expenses for labor, materials, ect. The distinction is that the company and owners arent making money, so they dont pay taxes. Those that do make money naturally do pay taxes.
What is the hard part to square?