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To: Turbopilot
This year for the first time I'll have to make quarterly estimated payments as a small business owner. That means no one is withholding anything from my income and I have to write a check to the IRS every quarter for 100% of my federal tax obligation. I ran the numbers today based on a couple different salary projections to figure out just what I will owe.
You're right, the Fairtax would be much easier. If your business is a service or retail business you'd only have to tally up your gross business (not personal) earnings from taxable sales and or services and send them 23% of it...every month.
28 posted on 06/16/2007 11:08:12 PM PDT by lewislynn
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To: lewislynn
You're right, that's yet another good point - small business owners can pay taxes after they've been collected, rather than having to estimate and pay taxes on money that hasn't even been earned yet.

Actually, as I understand it, my business wouldn't have to collect the FairTax since we sell capital equipment to companies. But if we did, I'd still agree with you 100% - adding tax to the price and paying it after it's collected seems almost utopian compared to building taxes into the price and owing taxes before one even gets the income.

29 posted on 06/16/2007 11:48:17 PM PDT by Turbopilot (iumop ap!sdn w,I 'aw dlaH)
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