He is not wrong. All profits from our subchapter S corp are taxed as personal income - even though we do not touch them. It's the fact that we CAN take the money; not that we DO.
oh, no question about you paying yourself from the business in that manner....NEVER said he was wrong on that Chanel....
He implied that you take the money you've been paid and is being taxed and then use it to reinvest in your company and I believe he is WRONG on that....I believe your reinvestment in the business is done BEFORE you pay yourself an individual income from the business.
also, I believe he is wrong implying tons more in taxes will have to be paid by these individual small business owners, because the tax does NOT go up at all for the first $250k of taxable income, but ONLY for the money you decide to take as income ABOVE that amount....above the $250k will have a tax increase of 3.6%....but the first 250k is exempt from a tax hike.