Assets Tax Deductible only, understand, difference, government, carrying

kim226

A very basic question: Why are assets tax deductible? In determining the tax base of an asset, I am to figure out the difference between the carrying amount and the taxable amount of the asset.

But I don't understand why the government would want to tax assets. I thought they only taxed incomes that flowed through the income statement because that is what the company earned.

PLEASE HELP