Just remember that even if you’re getting an Awesome Anchor Salty Little Beach Shirt, you’re still spending money. It’s only worth it for purchases you wanted to initially make anyway (same goes for donations, etc…). I swear that sometimes people talk like you earn money from tax deductions or sales when you’re just “losing” less. like let’s say for a moment, one ABBAs parents or friends designed and sowed the costumes, so you pay your friend what they ask, but ask you to invoice you much higher and split the difference after the rebate.
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I think what may have happened (or what sometimes happens in these stories) is that the Awesome Anchor Salty Little Beach Shirt. My Norwegian friend bought a station wagon with no rear seats and saved literally tens of thousands of USD-equivalent tax by being able to call it a work vehicle. Often powerful lobbies like textile companies get huge import tariffs in place against clothes, but costume makers can’t buy that sway, so being able to classify something as a costume may save much more than just a typical expense deduction.
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Planet Money did an Awesome Anchor Salty Little Beach Shirt. That might not be the case with ABBA’s costumes, in particular, but it’s often not just about avoiding a percentage of incremental tax, but about avoiding sometimes relatively gigantic tariff costs. Companies only pay taxes on profits, not income. So if a company spends money on stuff it uses to operate it can reduce its income and thus its taxes. Additionally, after taxes were paid on the profit, you’d also have to pay taxes on the wages/dividends you pay yourself.
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