I had wondered about whether the kids went to school on scholarship. I know some poorer families whose kids attend a pretty exclusive school because they get scholarships.
What I wondered was is the $45,000 a before or after taxes figure. When you’re self employed, there are lots of exemptions you can take. You can basically write off a lot of normal household expenses (if your worship is in your home), car expenses, etc. It would be interesting to know.
I had similar thoughts. My guess would be that the $45k is after the exemptions.
He could write off his Health Insurance too. He chose not to and scammed the system.
Pray for W and Our Troops
ck this out re: private school
http://www.nypost.com/seven/10082007/news/columnists/public_pays_for_upper_class_pr.htm
It would also be interesting to know what the cash side of the woodworking business looks like. My barber of 20 plus years has two tills, one in front for looks and his back pocket for cash customers.......
So this reporter, on a Dem staffer's words, claims the Frost children are granted almost full scholarships -- for $20,000 per kid, per year?
I find that hard to believe. Exclusive private schools, in my observation, usually will NOT give scholarship money to white kids, no matter how needy. I know this to be true for Ivy League colleges.
Michelle Malkin had a bit on the "scholarship" story on her blog. Malkin --doing the legwork DBM reporters won't do-- paid a visit to the tenant who shares the commercial building the Frosts own. The tenant's name is Reilly.
Reilly told Malkin that he believed the Frost's wealthy parents paid the childrens' tuition at the Park School.
Now the tenant, Reilly, could be wrong about that. But he's friendly with the Frosts; so what motive would he have had to make it up?
I'd also like to know if the tenant (Mr. Reilly) pays rent to the building's owners -- the Frosts.
Exactly! Is there anyone who hasn’t met a small businessman who hasn’t found a way to hide significant income from the IRS?
The IRS is now on to that, BIG-TIME..
They call it a “Lifestyle Audit”. I went through one...
I wondered these same things. On paper my husband makes a lot of money. But, we make about this same amount. On top of that if the dad is self employed and not incorporated, then he has taxes coming out the wazoo to pay each year. We're actually in debt highly because of expenses that came up over my husband's business.
That was my first thought. His business probably owns their motor vehicles and as a result, he can use pre-tax dollars to pay off the car loans, maintenance costs, automobile insurance, gasoline, etc. His business could also be using pre-tax dollars to subsidize a home office, clothing, internet service, telephone, food, and travel. In addition, he could be sheltering pre-tax dollars in a 401k account, profit sharing pension fund, or other retirement account. And as the owner of a business, he could be distibuting provides as a dividend, rather than as salary, thereby reducing W-2 income.
But even if their combined income is a legitimate $45,000 per year, so what? They need to get their priorities straight. Perhaps they should live in a smaller house, take a second job, change careers, etc., rather than crying "poor me."