Should cash back earned from credit card reward programs be taxed as profit/income?
If "cash back" from credit cards is income, then it would only be fair money paid to credit card companies should be deductible (such as annual fees, late payment charges and interest)
It isn't income. Hence the term "cash *back*”. It is like a rebate, a little of the purchaser's money returned to them. If you were to get back more than you spent, it would be income and should be taxes as such. I want that card!
Are factory incentives on cars taxable? No. Next they will want to tax sale prices as income because they are below list price. This is such crap.
It is an interest rebate. I thought I heard it all when MD taxed the rain. All taxes are theft.
Double taxation. I have already paid the tax on it when I bought the product.
You don't pay income tax when you buy something. You pay it on money you take in as profit.
Tax when you earn it. Tax again when you spend it. Tax it when you die. Tax it when you give it to a family member. Sure, let's make another tax. They already tax water....might as well tax the air, too.
It's income. Why not. Now it might be a little hard for the IRS to prove it unless you were getting large amounts at a time. Is there a paper trail?