not business, people
http://www.politico.com/news/stories/0708/11670.html
This is how I understood it, maybe I’m missing something.
Under Obama’s plan to let the scheduled 2011 tax rate hikes occur, and his plan to raise the self-employment tax on those making more than $250,000, the S corporation rate would rise from 35 percent to 39.6 percent. The sole proprietor and partner rate would rise from 37.9 percent all the way up to a staggering 50.3 percent. Many Democrats in Congress have proposed making all small businesses (including S corporations) pay this 50-plus percent rate. A small business tax rate that high would be the highest marginal rate faced by them in nearly a quarter-century.
That is absurd. So basically you are punishing those who worked their asses off and went through all those years of sacrifice to get their business going and you are taking half of what they have worked so hard for to give to poor people who have no drive to be that successful. Typical liberal socialist bullshit.
pretty much.
Unless I’m mistaken, but no one has corrected it (nor the other question) yet soooo…
Of course not. The dems are crying for more regulation, when they have NONE themselves. They try to blame the Bush administration for all their fuck ups like they had no idea. Ignorance is bliss. These people both democrat and republican have become so power hungery and socialist it makes me sick. I am all for taxes, they are essential. But to take half of what someone who has worked their ass off for is simply absurd. That is borderline communist. My father started a small landscaping company about 10 years ago. It is finally starting to pick up a bit now. People have absolutely NO IDEA the amount of hard work and sacrifice it requires to have a semi successful business. And they seem to want to punish those who work hard to better themselves. That goes against everything this country stands for.
well, to be fair… both sides are guilty to some degree. I really don’t think they’re actively trying to screw anyone either (or at least a majority). Some of Obama’s plans don’t add up though, not to say mccains do… but he’s not running on that alone/as a campaign slogan
How many people actually make $250k a year off of a sole proprietorship or partnership? If you can write off every expense and you are still showing 250k profit for yourself, or in a partnership, each, you are sitting pretty. Anything you reinvest in the business or spend on it comes off of that. Everyone I know that owns a small business pays 0, or close to no tax.
Also, the reason those are taxed so highly is because with a normal business, the business pays taxes on its income, and then each employee, including the owner, pays taxes on what the company pays them. With a sole proprietorship, whatever the owner makes off of the company is tax free. That 50% is a combination corporate AND personal income tax. Did I explain that understandably?
um…there are systems out there to help the poor with healthcare. They just need reform. Not handing out free money like candy on halloween and making the american people pay for it.
Then your friends are going to be looked at for tax evasion. Small buisnesses pay a SHIT TON of taxes and fees.
It’s per PERSON only? So if a “small-med” business, owned equally 3 ways showed profits of 749K, they wouldn’t get hit by this tax increase?
and how are your friends getting away with not paying taxes? granted it’s not quite the same, but doing moonlighting work on the side I pay out of my ass at the end of the year claiming extra income on a DBA
These are individuals and companies that enjoyed millions of dollars in tax breaks for 8 years while the smaller companies received shit. Where is your sympathy for them?
Not if they reinvest it…I mean, your dad made you so unless your mom had an IQ of 1 to bring down the average then he might not have looked into it but…landscaping…lets see.
Trucks: write off
Lawn mowers: write off
Weed wackers, blowers, etc: write off
Snow plows: write off
Gas: write off
None of that is tax evasion.
That’s the way I understood it.
And are you deducting the computer you work on, all of your software, supplies, etc. from your side income?
So what about people trying to have thier small buisnesses grow? They got shit compared to larger companies in terms of tax breaks.
If you’re in the 5% range that Obama is going to tax your sitting pretty, he’s looking out to help those who are haveing a hard time making it when salaries have flatlined and prices have increased. That would be the rest of us.
The right still has not shown me any plan to help the middle class.
I was going to explain the concept of a LLC to Jeg but I don’t think it is worth it. With a LLC you are taxed at what you end up with at the end of the tax season. If you reinvest it and pretty much “hide” it in other investments then it is not taxed.
ok, for landscaping (or contracting in general where you can work out of your house) that works very well, but I’m sure that’s more of an exception than a rule.
I’m sure all of their employees work on the books too 
and don’t think I’m being sarcastic or anything, these are my legitimate concerns
I do on some things, others not so much (due to my own ignorance and lazyness more than anything else I’m sure)
If you have a creative accountant and save receipts, you can probably save a good chunk on what you pay in tax on your DBA. Your phone bill, since you do business on it. Your internet. etc. etc. etc.
These are all of the things the big guys hire very good accountants to take advantage of. The little guy gets screwed because he doesn’t know and no one tells him, and he ends up paying more. There are big corporations out there that do millions of dollars in profits in real life, but for tax purposes they lose money.
well, that is my sympathy. I have a feeling (and from what I understand about his plan) this will effect a large portion of small businesses that cannot work out of their house or just don’t have the tax exemptions do squeek under it.
It will be our burden, and theirs (again, from what I understand so far)
are there limits (percentages?) that apply to this? Or pretty much any expense? Wish I knew more about this, could of wrote off the computer last year lol