Trade of money in return for promise of a future good/service is unquestionably income in the US, but that does not necessarily imply that sort of marginal rate. For example, if the money hits a corporate entity who hires programmers with it, the corp will use their salaries as an expense to offset that income.
Similarly, if you raise $25k to make a foobar and spend $20k on materials, you'd only owe taxes on the profit.
> For example, if the money hits a corporate entity who hires programmers with it, the corp will use their salaries as an expense to offset that income.
Or, to my understanding, even if it goes to a person. Being a sole proprietor does not preclude you from deducting your business expenses.
One difficulty comes of the income comes in one tax year (no deduction yet), and the deduction comes in the next tax year (might not have enough income to deduct again).
Similarly, if you raise $25k to make a foobar and spend $20k on materials, you'd only owe taxes on the profit.
I am not an accountant, etc.