I suspect most non minority lefties were Anthony Weiner type losers when they were young and therefore support laws and rules which stifle the successful. If fc really does have a successful business... he will soon realize... he does not want to be paying... 39 percent income tax plus 15 % fica and medicare and obamacare taxes (and state taxes and property taxes and sales taxes) so that his customers can stay at home play video games, get section 8 housing, food stamps, unemployment and free hvac phones because they need it for safety reasons. he will be working his ass off and a family of four doing nothing will have more disposable income.
That's the reason why I never buy it when these leftists claim to be small business owners. It seems to be a convenient ploy to attack the "other side" from a position of perceived strength.
that's not exactly how the irs tax works jem nor the fica For a small business man to pay the top tax rate he is doing very well with even a half ass accountant, and you should know the tax rate is graduated it isn't 39% on the total amount earned and social security is capped also. There are many legal ways to keep taxable income lower for a small business and more than that for the wealthy and large corporations, ala Romney and GE.
Lets say you are right. On your fist 60 grand the taxes are high but acceptable to a lefty. Of course you could do nothing and have the same disposable income But on the next 50... State local income taxes, gas taxes, business taxes... Fed income taxes at pre bush rates, new obamacare taxes - 15% fico (especially if they phase out caps) medicare and more. Sales tax Property Tax sin and excise taxes city tax business tax corporate tax gas tax licensing taxes phone taxes The effective rate on that next 50 might leave the guy with what 25? So now he is working 50 hours a week to make 25 thou more than the guy who does nothing. I am sure plenty of people choose nothing and fish. that is what is wrong with the system. the freebies combined with massive taxation lead to a dead economy.
Well done, Jem. I've made the exact same argument in the past. For whatever reason, the left never wants to include the various "other" taxes that are a VERY REAL part of the overall tax burden. So let's figure out how many of the aforementioned taxes existed that last time we had the higher tax rates. If anything, the lowering of taxes created an additional incentive for local taxing districts to simply "pile on" all of their various "use taxes" to try and nickle and dime the populous under the guise of some public benefit. The reality is that, when taken in cumulative, those additional "other" taxes create an enormous drain on consumer spending/savings, etc, etc...another part of the reason why people are so indebted. We could create a completely new thread and each one of us could list a new tax or "fee" that has been created in the past 10-15 years to fund the largesse of our local politico's. And once it's created in some other state, the local politician's jump on the bandwagon and create their own skimming operation.
Did you purposely omit SE taxes? I remember Clinton stuck a dagger into the SBO back in 96 with those changes.
Come on jem you're smarter than that. Property tax is constant regardless of how much you make, what is the difference between business and corporate tax (nothing?) and they are a business expense and have nothing to do with personal income. Licensing, phone gas, are all fixed costs. Now a wild guy like you may spend a hell of lot more on sin tax but hey you earned it man. So I can safetly assume you have no training or comprehension of accounting or taxes, kinda like political polls and science, but you are one of the more likeable righties here so that's worth something. Mr denner if you reread my post you'll see I included social security tax, the biggest part of the SE tax.
first of all if you owned a business... as I do, I pay rent. part of ther reason rent is high is because property taxes on the buiding are high. in california corporations pay taxes of around 800 dollars or a percent of receivables...I narrowly avoided a huge tax bill when I owned a trading business. licensing phone costs and gas are not fixed costs when you have to scale up by hiring employees or independent contractors. Myself and a friend just tried to scale up through Independent contractors. We both concluded we need to control the people more... for him it meant buying a car... phone... all the other expenses. For me... I concluded the costs are not worth it at the moment but I will next year. part of the reason my rent is high is because of the property taxes. I have owned my own businesses since 1992. I have done my own taxes most of that time... but when the trading firm was kicking ass I had an accountant. I don't want to get into this too much but as an attorney I advised clients to recharacterize 1099s from their llc as cap gains instead of income. It was audited.. it worked I saved about 10 people a few hundred thou in taxes over a few years... I know part of the tax code very well... It happens to be business expenses... PLus I have been on pbs disclosing foreclosure and foreclosure tax liability.... which may be about to change. Also when I try to hire someone to do some work in LA. . they need gas money and wear and tear on their car.. and everything else. As you add up taxes... it makes less and less sense to invest your time and money in a venture. One of my clients is a house flipper when he has to raise money... the people investing look at after tax profits. Only people who don't own businesses think you should go raising taxes on small businessmen.