Is it true that in a business or an investment, we only pay tax if we make a profit? That is, if we make only a loss, there is no tax?
Why is this so? Because from what I understand, the tax is paid to the government because we are using the resources (roads, public libraries etc) built on government money. And we need to pay money to maintain these resources.
Now the man that makes a loss used these resources as much as the man that made a gain. So why does only one of them pay tax? Is the reason purely humanitarian?