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Posted on 07/14/2009 11:49:19 AM PDT by Mount Athos
Too bad there’s not enough rich people to actually make this plan work.
You know this how ?
No, a shock would be a democrat that PAYS taxes.
Live and work in DC my friend. All kinds of folks around here do very well with one and two person consulting shops working for World Bank, various agencies, etc. You know, like Tom Daschle's wife that we all used to complain about. You set up a little LLC with yourself as sole proprietor and you start peddling your influence. It's the stuff our democracy is made of.
Actually, no. There is a $185,000 or thereabouts immediate capital write-off for small businesses, so you can reinvest up to $185,000 and write this off in the current tax year. Only then do you start to have to depreciate your capital investments. Moreover, if you have been investing in your business for the long term, you should already have a lot of recurring depreciation against which you can make new investments.
Anyone who runs a small business already knows this.
And given all the other tax advantages of owning a small business, it is not actually the well-off small businessman (who is the target of this tax) that is getting screwed. It is the salaried workers who get screwed.
Like I said. I am not in favor of raising taxes on anyone. But this particular cult of the sacred small businessman is worshipping another false god.
Once this happens the Congress will pass laws against "economic crimes", just like the old communist Soviet Union and the ChiComms did. And like North Korea still does. We now have thought crimes (so called "hate crimes") and now we Americans will be designated "financial criminals" if they sell or trade their own personal property without federal government permission. Think of the day when the Federal Government (or even state government) will enact laws that say you have to have government permission to sell your house or just to move to another state. (Hey, it's on it way.)
I already said I disagree with all new taxes. The people they employ, however are not screwed because their salaries are still deducted as business expenses for net income is computed for tax purposes. No we don't all pay for it.
I don't want the feral gubmint to have more money, and I think that taxes should be cut for everyone. But this small business owner as hero of the country argument is a bit much. The professional who earns a salary has invested just as much, works just as hard, and has just as much at risk, perhaps more.
Well, there’ll be a whole lot of “criminals” then. And people just getting fed up and walking away from their property. And riots and shortages and unrest, etc.
That it may well be. However, your comment implied that it was what the vast mahority of sucessful small businesses were, and therefor we shoulden't worry about taxing them so heavily.
That is not true.
Bullcrap. Total garbage. And I am a salaried professional, not a business owner.
How’s that Hope and Change going for ya, dumbasses that voted for him??
The Dems want small businesses to close. Too many Republicans own small businesses, and small businesses don't employ enough union labor.
The Dems prefer big businesses that they can coerce into making big campaign contributions (if they know what's good for them) and employ lots of union labor.
I am sure you are correct.
I used to be a small business owner. Net profit is what you need to expand the business, buy more equipment, rent bigger space, and hire more people. Yes, you can borrow the money, but that just means you go bust at the first downturn in revenue.
High taxes mean that you can't grow the business. And since you generally find yourself with small or negative cash flow for the first few years of a startup, this means that you will have a harder time making back the money once the business finally turns a profit. This means that fewer people will BOTHER taking the risk of starting a business.
Each of thes is already a deductible expense before you calculate net taxable profit. Moreover, a small business can take an immediate deduction of up to $250,000 for capital investments rather than have to depreciate it over time. This tax only applies to the final bottom line reportable net income after all business expenses, including IRA or 401(k) contributions.
Sure, a tax is a tax,and we all hate taxes, but this is not about to destroy small business.
since you generally find yourself with small or negative cash flow for the first few years of a startup, this means that you will have a harder time making back the money once the business finally turns a profit. This means that fewer people will BOTHER taking the risk of starting a business.
As a small business owner, I have no sympathy for folks who cannot do simple accounting or understand a few simple things about tax law. Of course you can carry forward operating losses to offset profits in years to come, or charge it against other current income.
I think you are right but if you take this out a little more the libs won’t be able to find rich people. If govt is going to be the end all for everyone why work? If I can lay around the house all day and still get free money for it I’d be stupid to work.
They’ll chuck you in the gulag. Think soviet russia. It only takes a generation or so to flip everything around.
That would be interesting. I wonder what the charge would be? “Defrauding” the gubmint? How times are a changin’.
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