DID YA HEAR? 80% of the over 250K crowd is "Small Business"!

[SpidermanTuba]

I am so sick of this "fair share" bull shit.

1999 the top 5% paid 55.45% of all income taxes and the bottom 95% paid 44.55%
2000 the top 5% paid 56.47% of all income taxes and the bottom 95% paid 43.53%
2001 the top 5% paid 53.25% of all income taxes and the bottom 95% paid 46.75%
2002 the top 5% paid 53.80% of all income taxes and the bottom 95% paid 46.20%
2003 the top 5% paid 54.36% of all income taxes and the bottom 95% paid 45.64%
2004 the top 5% paid 57.13% of all income taxes and the bottom 95% paid 42.87%
2005 the top 5% paid 59.67% of all income taxes and the bottom 95% paid 40.33%
2006 the top 5% paid 60.14% of all income taxes and the bottom 95% paid 39.86%

Seems to me the top 5% are paying more than their fair share.

Who Pays Income Taxes? See Who Pays What

That's because the top 5% are a lot richer now than they were in 1999. The actual tax rates have gone DOWN since then

I already pointed out the flaw with that, but it doesn't support charging them a higher percentage in taxes just because they are rich.

Ok. We'll tax them more because we need the money, how's that?

 

[oreo]

Meaning they don't pay taxes on income. They pay taxes on profit.

And in the case of Subchapert S corporation profit becomes personal income.

I'm still missing how that is germane to the original discussion.

the business is not hurt....

this is the business's profit, after all reinvestment in the company is done and expenses are paid...this includes a variety of things, especially if their small business is in their home, which is the case with more than HALF of what is considered a small business, is in actuality a single person or two, in their own business....

so computers, electric, heat,snow plowing, house upkeep and repairs etc, your business usage of your car, and its insurance, and your cost of goods for the business, can all be duductded from your taxes, including the business portion of your home and what you need to reinvest in your business...before you come out with your net profit...or ones taxable income....these are advantages that the individual income tax payer does not have, to lower their taxable income...

MOST all individual small businesses, do not NET more than $200-$250k in taxable income, so they will NOT be affected in the manner that oreo is saying.

Very few will.

Care

The difference between income & profit for S corporations.: Owners of S-corps. file two returns. One for the S-corp, & a 1040 for their personal returns. The S-return is strickly what happened to the business during the year with all gross sales, less all business expenses, payroll, including the payroll or salaries of the owners, which is known as income. Salaries of the owners, or income is taxed & is shown on their W-2 forms. The S-Corporation does not pay any tax--all income, profit & or loss from the S-corporation goes to the owners to pay on their personal 1040's. If the bottom line after all these expenses are paid shows a profit--it goes on the owners personal 1040 income tax return as K-1 income or dividend income. If there are several owners of the S-corporation--this profit will be distributed as per the number of shares each owner owns. It is taxed in the same manner as a retiree who receives dividends from their stock holdings. If there is a loss shown for the year, this is also distributed between all owners & it is a deduction that can be taken against any profit shown for preceding years.

Henceforth, if the owners (income) plus the k-1 dividend (profit) as shown on their personal 1040's hits the 250K mark--they enter the realm of a 40% federal income tax. This does not include a state income tax--that may add another 10% to the 40%. So in essense these business owners may end up paying at least .50 cents in taxes on every dollar they earn.

I am a sub-chapter S corporation. Most S-corporations do not work out of their homes. BTW--You can yourself--depending on what type work you do--deduct for a home office expense--if you take work home--from your employers office. In fact many employees do.

In my business as an electrical contractor--we have to buy work trucks--loaded with ladders & tools. I am not going to drive it over to the grocery store, I have a personal car that does that. I cannot depreciate, or write off expenses for. The work trucks are depreciated out over several years time, along with tools & other equipment.

Small business or S-corporations are the largest employer in this country. Therefore, it's obvious if they are the largest employer in this country they are made up of 2 to 400 or more employees per business.

There is no criteria or limit on S-corporations as to how many employees they have. They can have hundreds of employees--before it would be beneficial for their business to classify themselves as a C-corporation.

They are your dentist offices, your doctors offices, your trash collection company, your auto mechanics, & they are though-out the construction industry all the way from A to Z whom are all very capable of making over 250K per year.

These are the people that are stuck in the "evil rich"--mentality of this country. If you impose more taxes on the owners of these business'es it "always" leads to one single thing. They cut back on employees & expenditures, including the purchases of new equipment to operate or grow their businesse's.

 

[Care4all]

And in the case of Subchapert S corporation profit becomes personal income.

I'm still missing how that is germane to the original discussion.

the business is not hurt....

this is the business's profit, after all reinvestment in the company is done and expenses are paid...this includes a variety of things, especially if their small business is in their home, which is the case with more than HALF of what is considered a small business, is in actuality a single person or two, in their own business....

so computers, electric, heat,snow plowing, house upkeep and repairs etc, your business usage of your car, and its insurance, and your cost of goods for the business, can all be duductded from your taxes, including the business portion of your home and what you need to reinvest in your business...before you come out with your net profit...or ones taxable income....these are advantages that the individual income tax payer does not have, to lower their taxable income...

MOST all individual small businesses, do not NET more than $200-$250k in taxable income, so they will NOT be affected in the manner that oreo is saying.

Very few will.

Care

The difference between income & profit for S corporations.: Owners of S-corps. file two returns. One for the S-corp, & a 1040 for their personal returns. The S-return is strickly what happened to the business during the year with all gross sales, less all business expenses, payroll, including the payroll or salaries of the owners, which is known as income. Salaries of the owners, or income is taxed & is shown on their W-2 forms. The S-Corporation does not pay any tax--all income, profit & or loss from the S-corporation goes to the owners to pay on their personal 1040's. If the bottom line after all these expenses are paid shows a profit--it goes on the owners personal 1040 income tax return as K-1 income or dividend income. If there are several owners of the S-corporation--this profit will be distributed as per the number of shares each owner owns. It is taxed in the same manner as a retiree who receives dividends from their stock holdings. If there is a loss shown for the year, this is also distributed between all owners & it is a deduction that can be taken against any profit shown for preceding years.

Henceforth, if the owners (income) plus the k-1 dividend (profit) as shown on their personal 1040's hits the 250K mark--they enter the realm of a 40% federal income tax. This does not include a state income tax--that may add another 10% to the 40%. So in essense these business owners may end up paying at least .50 cents in taxes on every dollar they earn.

I am a sub-chapter S corporation. Most S-corporations do not work out of their homes. BTW--You can yourself--depending on what type work you do--deduct for a home office expense--if you take work home--from your employers office. In fact many employees do.

In my business as an electrical contractor--we have to buy work trucks--loaded with ladders & tools. I am not going to drive it over to the grocery store, I have a personal car that does that. I cannot depreciate, or write off expenses for. The work trucks are depreciated out over several years time, along with tools & other equipment.

Small business or S-corporations are the largest employer in this country. Therefore, it's obvious if they are the largest employer in this country they are made up of 2 to 400 or more employees per business.

There is no criteria or limit on S-corporations as to how many employees they have. They can have hundreds of employees--before it would be beneficial for their business to classify themselves as a C-corporation.

They are your dentist offices, your doctors offices, your trash collection company, your auto mechanics, & they are though-out the construction industry all the way from A to Z whom are all very capable of making over 250K per year.

These are the people that are stuck in the "evil rich"--mentality of this country. If you impose more taxes on the owners of these business'es it "always" leads to one single thing. They cut back on employees & expenditures, including the purchases of new equipment to operate or grow their businesse's.

Thank you so much for explaining this oreo!

Let me ask, is the Scorp taxed at income tax rates or is there some sort of business or corporate tax rate that applies to them?

I mean, if their rates are income tax bracket rates, can the scorp itself be caught in some thing like the AMT, the Alternative minimum tax?

care

 

[Ravi]

the business is not hurt....

this is the business's profit, after all reinvestment in the company is done and expenses are paid...this includes a variety of things, especially if their small business is in their home, which is the case with more than HALF of what is considered a small business, is in actuality a single person or two, in their own business....

so computers, electric, heat,snow plowing, house upkeep and repairs etc, your business usage of your car, and its insurance, and your cost of goods for the business, can all be duductded from your taxes, including the business portion of your home and what you need to reinvest in your business...before you come out with your net profit...or ones taxable income....these are advantages that the individual income tax payer does not have, to lower their taxable income...

MOST all individual small businesses, do not NET more than $200-$250k in taxable income, so they will NOT be affected in the manner that oreo is saying.

Very few will.

Care

The difference between income & profit for S corporations.: Owners of S-corps. file two returns. One for the S-corp, & a 1040 for their personal returns. The S-return is strickly what happened to the business during the year with all gross sales, less all business expenses, payroll, including the payroll or salaries of the owners, which is known as income. Salaries of the owners, or income is taxed & is shown on their W-2 forms. The S-Corporation does not pay any tax--all income, profit & or loss from the S-corporation goes to the owners to pay on their personal 1040's. If the bottom line after all these expenses are paid shows a profit--it goes on the owners personal 1040 income tax return as K-1 income or dividend income. If there are several owners of the S-corporation--this profit will be distributed as per the number of shares each owner owns. It is taxed in the same manner as a retiree who receives dividends from their stock holdings. If there is a loss shown for the year, this is also distributed between all owners & it is a deduction that can be taken against any profit shown for preceding years.

Henceforth, if the owners (income) plus the k-1 dividend (profit) as shown on their personal 1040's hits the 250K mark--they enter the realm of a 40% federal income tax. This does not include a state income tax--that may add another 10% to the 40%. So in essense these business owners may end up paying at least .50 cents in taxes on every dollar they earn.

I am a sub-chapter S corporation. Most S-corporations do not work out of their homes. BTW--You can yourself--depending on what type work you do--deduct for a home office expense--if you take work home--from your employers office. In fact many employees do.

In my business as an electrical contractor--we have to buy work trucks--loaded with ladders & tools. I am not going to drive it over to the grocery store, I have a personal car that does that. I cannot depreciate, or write off expenses for. The work trucks are depreciated out over several years time, along with tools & other equipment.

Small business or S-corporations are the largest employer in this country. Therefore, it's obvious if they are the largest employer in this country they are made up of 2 to 400 or more employees per business.

There is no criteria or limit on S-corporations as to how many employees they have. They can have hundreds of employees--before it would be beneficial for their business to classify themselves as a C-corporation.

They are your dentist offices, your doctors offices, your trash collection company, your auto mechanics, & they are though-out the construction industry all the way from A to Z whom are all very capable of making over 250K per year.

These are the people that are stuck in the "evil rich"--mentality of this country. If you impose more taxes on the owners of these business'es it "always" leads to one single thing. They cut back on employees & expenditures, including the purchases of new equipment to operate or grow their businesse's.

Thank you so much for explaining this oreo!

Let me ask, is the Scorp taxed at income tax rates or is there some sort of business or corporate tax rate that applies to them?

I mean, if their rates are income tax bracket rates, can the scorp itself be caught in some thing like the AMT, the Alternative minimum tax?

care

She's still being a bit misleading. The K1 reported income is still taxed as income, not as a capital gain. The advantage is not having to pay social security and medicare tax on the K1 income...but one must still pay regular income tax.

Also, for the purpose of the discussion, most small business owners make less than $250,000 per year even taking into account their salary and any profit left at the end of the year.

btw, Scorps are not taxed at all...only the employees and/or shareholders are taxed for any income they receive from the scorp.

 

[oreo]

the business is not hurt....

this is the business's profit, after all reinvestment in the company is done and expenses are paid...this includes a variety of things, especially if their small business is in their home, which is the case with more than HALF of what is considered a small business, is in actuality a single person or two, in their own business....

so computers, electric, heat,snow plowing, house upkeep and repairs etc, your business usage of your car, and its insurance, and your cost of goods for the business, can all be duductded from your taxes, including the business portion of your home and what you need to reinvest in your business...before you come out with your net profit...or ones taxable income....these are advantages that the individual income tax payer does not have, to lower their taxable income...

MOST all individual small businesses, do not NET more than $200-$250k in taxable income, so they will NOT be affected in the manner that oreo is saying.

Very few will.

Care

The difference between income & profit for S corporations.: Owners of S-corps. file two returns. One for the S-corp, & a 1040 for their personal returns. The S-return is strickly what happened to the business during the year with all gross sales, less all business expenses, payroll, including the payroll or salaries of the owners, which is known as income. Salaries of the owners, or income is taxed & is shown on their W-2 forms. The S-Corporation does not pay any tax--all income, profit & or loss from the S-corporation goes to the owners to pay on their personal 1040's. If the bottom line after all these expenses are paid shows a profit--it goes on the owners personal 1040 income tax return as K-1 income or dividend income. If there are several owners of the S-corporation--this profit will be distributed as per the number of shares each owner owns. It is taxed in the same manner as a retiree who receives dividends from their stock holdings. If there is a loss shown for the year, this is also distributed between all owners & it is a deduction that can be taken against any profit shown for preceding years.

Henceforth, if the owners (income) plus the k-1 dividend (profit) as shown on their personal 1040's hits the 250K mark--they enter the realm of a 40% federal income tax. This does not include a state income tax--that may add another 10% to the 40%. So in essense these business owners may end up paying at least .50 cents in taxes on every dollar they earn.

I am a sub-chapter S corporation. Most S-corporations do not work out of their homes. BTW--You can yourself--depending on what type work you do--deduct for a home office expense--if you take work home--from your employers office. In fact many employees do.

In my business as an electrical contractor--we have to buy work trucks--loaded with ladders & tools. I am not going to drive it over to the grocery store, I have a personal car that does that. I cannot depreciate, or write off expenses for. The work trucks are depreciated out over several years time, along with tools & other equipment.

Small business or S-corporations are the largest employer in this country. Therefore, it's obvious if they are the largest employer in this country they are made up of 2 to 400 or more employees per business.

There is no criteria or limit on S-corporations as to how many employees they have. They can have hundreds of employees--before it would be beneficial for their business to classify themselves as a C-corporation.

They are your dentist offices, your doctors offices, your trash collection company, your auto mechanics, & they are though-out the construction industry all the way from A to Z whom are all very capable of making over 250K per year.

These are the people that are stuck in the "evil rich"--mentality of this country. If you impose more taxes on the owners of these business'es it "always" leads to one single thing. They cut back on employees & expenditures, including the purchases of new equipment to operate or grow their businesse's.

Thank you so much for explaining this oreo!

Let me ask, is the Scorp taxed at income tax rates or is there some sort of business or corporate tax rate that applies to them?

I mean, if their rates are income tax bracket rates, can the scorp itself be caught in some thing like the AMT, the Alternative minimum tax?

care

Since all S-corporation income & profit flows through to the owners personal 1040 forms they are taxed just like the employees of the company.

On the other hand C-corporations are taxed. That's the difference between S & C. Sometimes it's beneficial to be a C corporation if the business is extremely large with thousands of employees. However, as you know, the overwhelming majority of small business in this country is are S-corporations.

 

[oreo]

The difference between income & profit for S corporations.: Owners of S-corps. file two returns. One for the S-corp, & a 1040 for their personal returns. The S-return is strickly what happened to the business during the year with all gross sales, less all business expenses, payroll, including the payroll or salaries of the owners, which is known as income. Salaries of the owners, or income is taxed & is shown on their W-2 forms. The S-Corporation does not pay any tax--all income, profit & or loss from the S-corporation goes to the owners to pay on their personal 1040's. If the bottom line after all these expenses are paid shows a profit--it goes on the owners personal 1040 income tax return as K-1 income or dividend income. If there are several owners of the S-corporation--this profit will be distributed as per the number of shares each owner owns. It is taxed in the same manner as a retiree who receives dividends from their stock holdings. If there is a loss shown for the year, this is also distributed between all owners & it is a deduction that can be taken against any profit shown for preceding years.

Henceforth, if the owners (income) plus the k-1 dividend (profit) as shown on their personal 1040's hits the 250K mark--they enter the realm of a 40% federal income tax. This does not include a state income tax--that may add another 10% to the 40%. So in essense these business owners may end up paying at least .50 cents in taxes on every dollar they earn.

I am a sub-chapter S corporation. Most S-corporations do not work out of their homes. BTW--You can yourself--depending on what type work you do--deduct for a home office expense--if you take work home--from your employers office. In fact many employees do.

In my business as an electrical contractor--we have to buy work trucks--loaded with ladders & tools. I am not going to drive it over to the grocery store, I have a personal car that does that. I cannot depreciate, or write off expenses for. The work trucks are depreciated out over several years time, along with tools & other equipment.

Small business or S-corporations are the largest employer in this country. Therefore, it's obvious if they are the largest employer in this country they are made up of 2 to 400 or more employees per business.

There is no criteria or limit on S-corporations as to how many employees they have. They can have hundreds of employees--before it would be beneficial for their business to classify themselves as a C-corporation.

They are your dentist offices, your doctors offices, your trash collection company, your auto mechanics, & they are though-out the construction industry all the way from A to Z whom are all very capable of making over 250K per year.

These are the people that are stuck in the "evil rich"--mentality of this country. If you impose more taxes on the owners of these business'es it "always" leads to one single thing. They cut back on employees & expenditures, including the purchases of new equipment to operate or grow their businesse's.

Thank you so much for explaining this oreo!

Let me ask, is the Scorp taxed at income tax rates or is there some sort of business or corporate tax rate that applies to them?

I mean, if their rates are income tax bracket rates, can the scorp itself be caught in some thing like the AMT, the Alternative minimum tax?

care

She's still being a bit misleading. The K1 reported income is still taxed as income, not as a capital gain. The advantage is not having to pay social security and medicare tax on the K1 income...but one must still pay regular income tax.

Also, for the purpose of the discussion, most small business owners make less than $250,000 per year even taking into account their salary and any profit left at the end of the year.

btw, Scorps are not taxed at all...only the employees and/or shareholders are taxed for any income they receive from the scorp.

Nor do retirees pay FICA taxes on their dividend income. No one does. If the owners of an S-corporation are taking too much "profit" or dividends, thereby negating to pay FICA taxes on themselves--versus salary on their total income--the IRS is right there for an audit. They not only sustain paying the addtional FICA taxes--but penalties & interest also. S-corporations are constantly monitored for this. In fact, they are targeted by the IRS for this.

Another way to look at it: Let's say you're an owner of an S-Corporation--but you hire people to manage your business, you hire employees to do everything. You never have to show up. That owner since they are not "working" the business or putting in hours to it, become K-1 dividend income not payroll. They are perfectly legal in not paying any FICA taxes on the income they receive from the S-corporation. Albeit that most S-corporations are managed, & worked by the owners.

Therefore, the working owners--the ones who put in 24/7 hrs. into their business to make it successful--are expected to pay FICA taxes on themselves--while the owner who shows up only once a year to collect a dividend check from the profit of their S-corporation pays NONE. Kind of backwards, isn't it?

THIS IS THE DIFFERENCE BETWEEN "EARNED INCOME & INVESTMENT INCOME". S-corporation business owners have a huge investment in their businesse's. They are entitled to receive dividend disbursements on the amount of Profit--just the same as you would--by investing in a company that makes a profit & pays dividends.

 

[sealybobo]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

 

[oreo]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

BTW--who in the heck ever told you that small business people where primarily made up of Republicans? he.he.he.

 

[WillowTree]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

 

[sealybobo]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

Wow! Everify!!! OMG!!! Is that anything like ACORN?

There are problems with the system.

PS. Do you know how careful Obama has to be with trade agreements? Anytime he tried to fix NAFTA, Canada and Mexico threaten to sue. Can you imagine that Bush/Chaney set it up this way on purpose?

You have no idea how many obsticles Obama has in front of him. It would be easier to drive thru Iraq.

 

[sealybobo]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

Who is then stupid? Libertarians?

 

[rayboyusmc]

Middle class will soon cease to exist.

No shit. Too bad it was Reagan who started the war on the middle class.

 

[rayboyusmc]

Some critics of the President’s budget charge that his proposals to roll back tax breaks for taxpayers with incomes over $250,000 would harm small businesses. In fact, only 8.9 percent of people with any small business income have incomes of over $250,000 and, thus, would even potentially be affected by these provisions. (See Figure 1.) And that figure substantially overstates the percentage of people with small business income who would actually be affected by these provisions; for example, only 1.9 percent of people with such income currently are in a tax bracket with a rate higher than 28 percent. As a result, the percentage of people with small business income who would be affected by proposals to increase the top two tax rates or limit the value of itemized deductions to 28 percent of deductable expenses would be extremely small.

Furthermore, even these estimates, from the Urban Institute-Brookings Institution Tax Policy Center, may overstate the impact of these provisions because they are based on the previous administration’s definition of “small businesses,” which includes investors in small businesses who have little or no role in managing them.[1] (For more on this point, please see the box below.)

Indeed, the vast majority of small business owners and their employees would benefit from proposals in the budget to cut taxes for middle-class taxpayers, such as extending the Making Work Pay tax credits enacted on a temporary basis earlier this month in the American Recovery and Reinvestment Act. In addition, most small businesses and their employees are likely to benefit from non-tax proposals in the budget, particularly the President’s proposal to reform the health care system by expanding health insurance coverage and making health care more affordable.

Very Few Small Business Owners Would Face Tax Increases Under President's Budget

 

[sealybobo]

Middle class will soon cease to exist.

No shit. Too bad it was Reagan who started the war on the middle class.

That is the brilliance of the GOP. They take credit for the good they do not do and they blame the Democrats for costing them a good economy and the Iraq war victory.

If it only weren't for Chris Dodd or Nancy Pelosi, who gave the GOP MORE than the American people even wanted them to give the GOP, and somehow it is their fault?

 

[editec]

And in the case of Subchapert S corporation profit becomes personal income.

I'm still missing how that is germane to the original discussion.

the business is not hurt....

this is the business's profit, after all reinvestment in the company is done and expenses are paid...this includes a variety of things, especially if their small business is in their home, which is the case with more than HALF of what is considered a small business, is in actuality a single person or two, in their own business....

so computers, electric, heat,snow plowing, house upkeep and repairs etc, your business usage of your car, and its insurance, and your cost of goods for the business, can all be duductded from your taxes, including the business portion of your home and what you need to reinvest in your business...before you come out with your net profit...or ones taxable income....these are advantages that the individual income tax payer does not have, to lower their taxable income...

MOST all individual small businesses, do not NET more than $200-$250k in taxable income, so they will NOT be affected in the manner that oreo is saying.

Very few will.

Care

The difference between income & profit for S corporations.: Owners of S-corps. file two returns. One for the S-corp, & a 1040 for their personal returns. The S-return is strickly what happened to the business during the year with all gross sales, less all business expenses, payroll, including the payroll or salaries of the owners, which is known as income. Salaries of the owners, or income is taxed & is shown on their W-2 forms. The S-Corporation does not pay any tax--all income, profit & or loss from the S-corporation goes to the owners to pay on their personal 1040's. If the bottom line after all these expenses are paid shows a profit--it goes on the owners personal 1040 income tax return as K-1 income or dividend income. If there are several owners of the S-corporation--this profit will be distributed as per the number of shares each owner owns. It is taxed in the same manner as a retiree who receives dividends from their stock holdings. If there is a loss shown for the year, this is also distributed between all owners & it is a deduction that can be taken against any profit shown for preceding years.

Henceforth, if the owners (income) plus the k-1 dividend (profit) as shown on their personal 1040's hits the 250K mark--they enter the realm of a 40% federal income tax. This does not include a state income tax--that may add another 10% to the 40%. So in essense these business owners may end up paying at least .50 cents in taxes on every dollar they earn.

I am a sub-chapter S corporation. Most S-corporations do not work out of their homes. BTW--You can yourself--depending on what type work you do--deduct for a home office expense--if you take work home--from your employers office. In fact many employees do.

In my business as an electrical contractor--we have to buy work trucks--loaded with ladders & tools. I am not going to drive it over to the grocery store, I have a personal car that does that. I cannot depreciate, or write off expenses for. The work trucks are depreciated out over several years time, along with tools & other equipment.

Small business or S-corporations are the largest employer in this country. Therefore, it's obvious if they are the largest employer in this country they are made up of 2 to 400 or more employees per business.

There is no criteria or limit on S-corporations as to how many employees they have. They can have hundreds of employees--before it would be beneficial for their business to classify themselves as a C-corporation.

They are your dentist offices, your doctors offices, your trash collection company, your auto mechanics, & they are though-out the construction industry all the way from A to Z whom are all very capable of making over 250K per year

yes, good so far.

.

These are the people that are stuck in the "evil rich"--mentality of this country.

If you impose more taxes on the owners of these business'es it "always" leads to one single thing. They cut back on employees & expenditures, including the purchases of new equipment to operate or grow their businesse's.

And then you go into fantasy land presuming to tell us WHAT LIBERALS think.

NO, some trademan running an Schapter electical business is NOT rich.

I know some of you WISH liberal believed that, but they don't.

Why you think they do is totally belong me.

 

[Care4all]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

BTW--who in the heck ever told you that small business people where primarily made up of Republicans? he.he.he.

IF e-verify IS already in place and 100% as you say, then why is more funding needed for it?

What is to stop businesses from using this e-verify system anyway, if it is already out there?

can't each state, on its own, require/legislate their businesses use e-verify?

 

[DiveCon]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

BTW--who in the heck ever told you that small business people where primarily made up of Republicans? he.he.he.

IF e-verify IS already in place and 100% as you say, then why is more funding needed for it?

What is to stop businesses from using this e-verify system anyway, if it is already out there?

can't each state, on its own, require/legislate their businesses use e-verify?

an on going project will need on going funding, or the project stops

 

[oreo]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

Wow! Everify!!! OMG!!! Is that anything like ACORN?

There are problems with the system.

PS. Do you know how careful Obama has to be with trade agreements? Anytime he tried to fix NAFTA, Canada and Mexico threaten to sue. Can you imagine that Bush/Chaney set it up this way on purpose?

You have no idea how many obsticles Obama has in front of him. It would be easier to drive thru Iraq.

Funny--I live in the Southwest--am an employer & have absolutely no problems with E-Verify.

Were'nt people like you ranting & raving that the entire "world" hated America when President Bush was in office?

How do you thing they're going to feel about the United States when we break existing NAFTA agreements that Bill Clinton signed?

 

[oreo]

Hey wait! Last week I told you guys that Republicans are small business and small business are the ones that are hiring illegal aliens and you guys said that not all small business' are republican owned.

Now you are suggesting that 80% of small business' make over $250k?

So then 80% of the people who hire illegals are Republicans.

Just wanted to point that out.

PS. What percentage of the small business owners are taking home a $250K salary? Very small percentage. Chances are they aren't showing that much income.

Any who are, expect a tax increase. The free ride is over.

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

BTW--who in the heck ever told you that small business people where primarily made up of Republicans? he.he.he.

IF e-verify IS already in place and 100% as you say, then why is more funding needed for it?

What is to stop businesses from using this e-verify system anyway, if it is already out there?

can't each state, on its own, require/legislate their businesses use e-verify?

To my knowledge no one is asking for more money for E-Verify--they just don't want funding cut.

Sure, I would love to see each state take on their own illegal immigration problems, but as we see the Federal Government has become the mother of all of that too.

States "always" handle problems much better than the federal government does.

 

[Care4all]

he.he.he.--you may want to contact your democrat representatives & ask them why they want to stop funding on E-verify. The only tool--that is 100% effective helping employers verify American citizenship--before they hire. It is an online system that employers can take 5 minutes to verify documentation, etc.

Or didn't you hear--Democrats in D.C. want to cut all funding for E-Verify. Republicans are outraged over this. The only people that would be delighted to hear that funding is being cut are illegals.

It's another democrat "buy" the minority vote policy--while they smoke screen people like you who actually believe that democrats are "protecting" their American jobs.

Wow! Everify!!! OMG!!! Is that anything like ACORN?

There are problems with the system.

PS. Do you know how careful Obama has to be with trade agreements? Anytime he tried to fix NAFTA, Canada and Mexico threaten to sue. Can you imagine that Bush/Chaney set it up this way on purpose?

You have no idea how many obsticles Obama has in front of him. It would be easier to drive thru Iraq.

Funny--I live in the Southwest--am an employer & have absolutely no problems with E-Verify.

Were'nt people like you ranting & raving that the entire "world" hated America when President Bush was in office?

How do you thing they're going to feel about the United States when we break existing NAFTA agreements that Bill Clinton signed?

just an fyi, it was george bush 1 that signed the NAFTA agreements, then it was to go back to congress to radify, then the president to sign it.

when bill clinton was running for president, he declared he would sign this treaty that george bush, the president of canada and the president of mexico signed....IF Congress passed it.

which they did pass it, so he did sign it and did keep his campaign promise.

so, bill clinton was not the president initiating NAFTA, nor the one who signed an agreement with these other countries....Bush 1 was....

care