I'm self-employed for over 20 yrs and here's your answer:
I'd have to raise the price of my services 30% to cover the tax...Why would I lower my service price knowing I have yet to pay tax on any money I choose to, or even have to spend?
If I lower my service price equal to what my income taxes were, what happens when I pay the new federal tax on what I spend?...I lose.
I'll reduce my income when you agree to reduce yours.
...what happens when I pay the new federal tax on what I spend?
you will be paying the same prices when you spend money -
"I'll reduce my income when you agree to reduce yours."
Geez, you haven't learned anything at all on these threads, have you, LL? When your costs go down .... oh, never mind. What's the use?
I was replying to "Your Nightmare". My point is yours taxes kill the self employed. The income tax needs to go to some kind of sales tax; which has its own problems.