Is this possible
 

For some of you people with some accounting credits under your belt.

I was watching C-span a couple of days ago when the subject was the current Bush proposal to cut taxes yet again. A guy called in and stated that he ran a small business and even though his expenditures on the business was greater than the profits on the business he still had to pay taxes on the income generated by the business. If expenditures are greater than profits how then is there any income that would require paying taxes?

profit and income are 2 different things.

maybe his small biz made the profit.. or lack of, but he got paid a salary and therefore he paid taxes on his income?


or maybe he printed his own funny money?