About small business people...

[The Paperboy]

Since it looks like small business people who make more than $250,000.00 a year will be hit with a tax increase I thought I'd give a little of my insight into this area as someone who has worked with small business people.

Small business people are the local dentist, vet, software programming outfit, auto repair shop, electrician, etc. Yes, even plumbers. They are people who have worked hard to create a business and those who are successful are rewarded with a nice income.

They are the engine of the economy. Their biggest expenses is payroll. When they get hit with increased taxes they spend less, hire less, cut wages or cut back on staff.

When they spend less this effects everyone else from the local florist to the local printer to the waitress at the local restaurant.

I'm guessing Obama's tax increase on a small business person making $250,000.00 will probably be around $8,000.00.

The question I have is this: Who would you rather have spend that money? The government or the small business person?

 

[Ravi]

2% of the country makes over $250,000 and I doubt even 1% of them are "small business people." The only ones that might possibly make that much in the list you provided are dentists...and they'd have to have a pretty upscale clientele.

 

[sparky]

even if we choke up NFIB or SBA stats, there's a whole lot more to small biz that jusy plain taxes, the biggest liability?>>>insurance

 

[DavidS]

Since it looks like small business people who make more than $250,000.00 a year will be hit with a tax increase I thought I'd give a little of my insight into this area as someone who has worked with small business people.

Small business people are the local dentist, vet, software programming outfit, auto repair shop, electrician, etc. Yes, even plumbers. They are people who have worked hard to create a business and those who are successful are rewarded with a nice income.

They are the engine of the economy. Their biggest expenses is payroll. When they get hit with increased taxes they spend less, hire less, cut wages or cut back on staff.

When they spend less this effects everyone else from the local florist to the local printer to the waitress at the local restaurant.

I'm guessing Obama's tax increase on a small business person making $250,000.00 will probably be around $8,000.00.

The question I have is this: Who would you rather have spend that money? The government or the small business person?

I highly doubt a vet is making $250,000 a year in net profit. Any good cpa will work the numbers just so you make under that.

I've explained this before. The tax increase comes on net revenue, not gross revenue. So if you make $200 million in gross revenue and you have spent $199,760,000, you don't see your taxes increase one penny.

 

[The Paperboy]

2% of the country makes over $250,000 and I doubt even 1% of them are "small business people." The only ones that might possibly make that much in the list you provided are dentists...and they'd have to have a pretty upscale clientele.

First of all from the list I gave you many of those businesses make more than $250,000.00. It depends on the intelligence and hard work of the business owner.

Do not confuse the individual plumber with the owner a plumbing business that employs 20 people.

There is a lot of propaganda from both sides on how many people will be effected. It will be approximately one million small businesses and/or people making over $250,000.00.

So who would you rather have spending that money? The individual or the government?

 

[Chris]

First of all from the list I gave you many of those businesses make more than $250,000.00. It depends on the intelligence and hard work of the business owner.

Do not confuse the individual plumber with the owner a plumbing business that employs 20 people.

There is a lot of propaganda from both sides on how many people will be effected. It will be approximately one million small businesses and/or people making over $250,000.00.

So who would you rather have spending that money? The individual or the government?

The government.

The rich suck. Soak the rich.

 

[The Paperboy]

I highly doubt a vet is making $250,000 a year in net profit. Any good cpa will work the numbers just so you make under that.

Many don't. Many do. I can assure you a vet with a couple associates and a staff of 10 is making over 250K. This is my business. I know what I'm talking about.

The tax increase comes on net revenue.

I'm talking about net.

It will effect about one million people small business people and/or those making over 200K or 250K as a family.

Again, the question is who do you want spending the money? The individual or the government?

 

[The Paperboy]

The government.

The rich suck. Soak the rich.

At least your honest. Do you mind my asking you what you do for a living?

 

[Chris]

Many don't. Many do. I can assure you a vet with a couple associates and a staff of 10 is making over 250K. This is my business. I know what I'm talking about.



I'm talking about net.

It will effect about one million people small business people and/or those making over 200K or 250K as a family.

Again, the question is who do you want spending the money? The individual or the government?

The government....

Bush left us with a $500 billion dollar budget deficit and a $10 trillion dollar National Debt.

The borrow and spend Republicans have bankrupted the country.

 

[Ravi]

First of all from the list I gave you many of those businesses make more than $250,000.00. It depends on the intelligence and hard work of the business owner.

Do not confuse the individual plumber with the owner a plumbing business that employs 20 people.

There is a lot of propaganda from both sides on how many people will be effected. It will be approximately one million small businesses and/or people making over $250,000.00.

So who would you rather have spending that money? The individual or the government?

Businesses don't pay income tax. The owners and employees of the business do. So unless someone is taking an income of $250,000 or greater out of the business, they've nothing to worry about.

It's quite obvious that you don't own a business...so why don't you talk to someone that does?

 

[The Paperboy]

Businesses don't pay income tax. The owners and employees of the business do. So unless someone is taking an income of $250,000 or greater out of the business, they've nothing to worry about.

I do own a small business. One million people will have their tax burden increased by Obama. Some will be small business owners, some not. It's not important. Either way they will spend less whether at the local restaurant, Home Depot or with the local handyman.

The question is: Who would you rather have spend that money? The government or the individual?

 

[bk1983]

First of all from the list I gave you many of those businesses make more than $250,000.00. It depends on the intelligence and hard work of the business owner.

Do not confuse the individual plumber with the owner a plumbing business that employs 20 people.

There is a lot of propaganda from both sides on how many people will be effected. It will be approximately one million small businesses and/or people making over $250,000.00.

So who would you rather have spending that money? The individual or the government?

98.6% of small business will not see their tax rate go up a single penny. Less then 2% will see their taxes go up under Obama plan.

Checking facts: Will Obama raise small biz taxes? - Oct. 16, 2008

 

[The Paperboy]

The government....

Bush left us with a $500 billion dollar budget deficit and a $10 trillion dollar National Debt.

The borrow and spend Republicans have bankrupted the country.

The Congress proposes the budgets and controls the purse strings.

The last two budgets were controlled by Democrats with a lame duck President.

Explain that one?

 

[Ravi]

I do own a small business. One million people will have their tax burden increased by Obama. Some will be small business owners, some not. It's not important. Either way they will spend less whether at the local restaurant, Home Depot or with the local handyman.

The question is: Who would you rather have spend that money? The government or the individual?

So you report a personal income to the IRS of $250,000 or more per year?

 

[The Paperboy]

98.6% of small business will not see their tax rate go up a single penny. Less then 2% will see their taxes go up under Obama plan.

Checking facts: Will Obama raise small biz taxes? - Oct. 16, 2008

Those percentages are very misleading but again it is not the point.

The point is one million small business people and/or those making over 200K or 250K as a family will see their taxes go up.

Again, the question is who do you want spending the money? The individual or the government?

 

[Red Dawn]

I do own a small business. One million people will have their tax burden increased by Obama. Some will be small business owners, some not. It's not important. Either way they will spend less whether at the local restaurant, Home Depot or with the local handyman.

The question is: Who would you rather have spend that money? The government or the individual?

Ravi is right. You don't understand business taxes, and I now think you're lying about being a "small business owner". Just like Joe not the Plumber, huh? Inventing things about yourself?

The 250k figure is NET, which means profit after business expenses such as wages for employees, office space, utilities, inventory purchases, and equipment are deducted out.

A "small" business owner might gross ten million dollars a year, be if she plowed that back into overhead, such as hiring new employees, she might still only net 250k, and not get a tax increase.

 

[The Paperboy]

So you report a personal income to the IRS of $250,000 or more per year?

Correct.

 

[Ravi]

Correct.

And how exactly does that affect your business? I can see how it could affect you, personally, but not your business. If you don't want to pay more in taxes, give out your additional income in employee bonuses or buy some new dog wash machines.

Win/win either way because the money will get spent in the economy instead of sitting in your personal savings account.

 

[The Paperboy]

Ravi is right. You don't understand business taxes.

I understand it quite well. I have an S corp. The corporation pays no taxes as we always zero out the expenses at the end of the year. There is nothing complicated about this and really is not the point.

The point is this:

Approximately one million small businesses and/or people making over 200K (or 250K as a family) will have a tax increase.

So who would you rather have spending that money? The individual or the government?

 

[bk1983]

Correct.

How much do you clear a year in sales?