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Alan Hicks divides long days between the insurance business he started in the late 1970s and the barbecue restaurant he opened with his sons three years ago. He earned more than $250,000 last year and said taxes took more than 40 percent. What’s worse, in his view, is that others — the wealthy, hiding in loopholes; the poor, living on government benefits — are not paying their fair share.
“It feels like the harder we work, the more they take from us,” said Mr. Hicks, 55, as he waited for a meat truck one recent afternoon. “And it seems like there’s an awful lot of people in the United States who don’t pay any taxes.”
Mr. Hicks, like many residents of Belleville, views this debate with unhappiness. He would like the government to cut spending but not reduce services. He is certain that the government should not raise taxes on the middle class, a group in which he includes himself, but he is ambivalent about asking anyone to pay more. Higher taxes would hurt his businesses, he said, so raising taxes on those who make more money seems likely to hurt their businesses, too.
“At this point, I guess it’s inevitable in order to get us out of this hole,” Mr. Hicks said of higher taxes. “Illinois is in bad shape, along with a lot of the nation. But I don’t feel like we should tax the middle class any more than we are right now. There’s going to come a point where they take the incentive out of working hard.”
If the government cut his taxes, Mr. Hicks said, he would use the money to put a roof over the picnic tables outside the restaurant, expanding the year-round seating area. He already employs 14 people; then he could hire more.
Alan Hicks divides long days between the insurance business he started in the late 1970s and the barbecue restaurant he opened with his sons three years ago. He earned more than $250,000 last year and said taxes took more than 40 percent. Whats worse, in his view, is that others the wealthy, hiding in loopholes; the poor, living on government benefits are not paying their fair share.
It feels like the harder we work, the more they take from us, said Mr. Hicks, 55, as he waited for a meat truck one recent afternoon. And it seems like theres an awful lot of people in the United States who dont pay any taxes.
Mr. Hicks, like many residents of Belleville, views this debate with unhappiness. He would like the government to cut spending but not reduce services. He is certain that the government should not raise taxes on the middle class, a group in which he includes himself, but he is ambivalent about asking anyone to pay more. Higher taxes would hurt his businesses, he said, so raising taxes on those who make more money seems likely to hurt their businesses, too.
At this point, I guess its inevitable in order to get us out of this hole, Mr. Hicks said of higher taxes. Illinois is in bad shape, along with a lot of the nation. But I dont feel like we should tax the middle class any more than we are right now. Theres going to come a point where they take the incentive out of working hard.
If the government cut his taxes, Mr. Hicks said, he would use the money to put a roof over the picnic tables outside the restaurant, expanding the year-round seating area. He already employs 14 people; then he could hire more.
http://www.nytimes.com/2012/11/30/u...rden-than-in-the-80s.html?pagewanted=all&_r=0
The self-proclaimed defenders of minorities and equal rights would answer that the vast majority of small businesses fall under the $250,000 threshold and that Mr. Hicks is the exception to the rule
If Mr. Hicks spends $100k to renovate his restaurant, his net income will be reduced by $100k. If he is in a 50% tax bracket, he will still be out $50k. In this economy, that may not be worth the risk.
Actually, those making between $110,000 and $400,000 get a huge tax break in the form of an exemption from Social Security taxes. In case anyone still isn't aware of it, Social Security is nothing more than a huge middle class welfare program dressed up as an "investment" placed in a "trust fund." In addition to providing benefits (SSI) to people who have never paid a penny into the system, it effectively imposes a means-tested scale for benefits paid to those who have contributed all their lives: Those who averaged about $2,000 per month in earnings get back 60% (about $1200 per month), while those who paid in four times as much ($8,000 per month) get back 30% (about $2400 per month).
But even worse than this inequity is the fact that those making over $110,000 per year get to escape the Social Security completely, leaving the Middle Class to pay for this crumbling system. The new income tax rates will make up this discrepancy for those making over $400,000, but the $250,000 earners will still be getting this huge tax break.
He earned more than $250,000 last year and said taxes took more than 40 percent.
Mr. Hicks, like many residents of Belleville, views this debate with unhappiness. He would like the government to cut spending but not reduce services. He is certain that the government should not raise taxes on the middle class, a group in which he includes himself, but he is ambivalent about asking anyone to pay more. Higher taxes would hurt his businesses, he said, so raising taxes on those who make more money seems likely to hurt their businesses, too.
He earned more than $250,000 last year and said taxes took more than 40 percent.
first thing would be to fire his accountant ... 40% is above the existing rates, even without deductions."more than $250,000 last year" - who's kidding who ?
Alan Hicks divides long days between the insurance business he started in the late 1970s and the barbecue restaurant he opened with his sons three years ago. He earned more than $250,000 last year and said taxes took more than 40 percent. Whats worse, in his view, is that others the wealthy, hiding in loopholes; the poor, living on government benefits are not paying their fair share.
It feels like the harder we work, the more they take from us, said Mr. Hicks, 55, as he waited for a meat truck one recent afternoon. And it seems like theres an awful lot of people in the United States who dont pay any taxes.
Mr. Hicks, like many residents of Belleville, views this debate with unhappiness. He would like the government to cut spending but not reduce services. He is certain that the government should not raise taxes on the middle class, a group in which he includes himself, but he is ambivalent about asking anyone to pay more. Higher taxes would hurt his businesses, he said, so raising taxes on those who make more money seems likely to hurt their businesses, too.
At this point, I guess its inevitable in order to get us out of this hole, Mr. Hicks said of higher taxes. Illinois is in bad shape, along with a lot of the nation. But I dont feel like we should tax the middle class any more than we are right now. Theres going to come a point where they take the incentive out of working hard.
If the government cut his taxes, Mr. Hicks said, he would use the money to put a roof over the picnic tables outside the restaurant, expanding the year-round seating area. He already employs 14 people; then he could hire more.
http://www.nytimes.com/2012/11/30/u...rden-than-in-the-80s.html?pagewanted=all&_r=0
The self-proclaimed defenders of minorities and equal rights would answer that the vast majority of small businesses fall under the $250,000 threshold and that Mr. Hicks is the exception to the rule
I don't understand how high taxes can prevent Mr. Hicks from renovating his restaurant? Whatever he spends on renovation will be deducted from his taxable income, so what's the problem?
Mr. Hicks, like many residents of Belleville, views this debate with unhappiness. He would like the government to cut spending but not reduce services. He is certain that the government should not raise taxes on the middle class, a group in which he includes himself, but he is ambivalent about asking anyone to pay more. Higher taxes would hurt his businesses, he said, so raising taxes on those who make more money seems likely to hurt their businesses, too.
Good luck with that idea, Pollyanna.
Putting a roof on a building is not immediately deductible; he would get a prorata share of the amount spent over a 39 year period if it is considered part of the building.
Putting a roof on a building is not immediately deductible; he would get a prorata share of the amount spent over a 39 year period if it is considered part of the building.
OK, so he will have to get a loan or a mortgage to pay for the roof -- and I'm sure there are lot programs giving the small bushiness aces to cheap loans. But many other business expenses, like salaries for the new employees are deductible.
So if there is a good business case for expansion, higher taxes would not be an obstacle.
