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View Diary: Boehner just shot himself in the foot (170 comments)

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  •  What Small Businesses Pay Individual Taxes? (1+ / 0-)
    Recommended by:
    Brahman Colorado

    Only sole proprietors isn't it? Is there any business person taking home a quarter million after expenses, that hasn't incorporated his business somehow to avoid being a sole proprietor?

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Sun Dec 02, 2012 at 09:10:22 AM PST

    •  It is a little more complex than that (4+ / 0-)
      Recommended by:
      ahumbleopinion, stormicats, ferg, Odysseus

      An S-chapter corporation passes its income to its shareholders and it is taxed on their individual returns. So you can be incorporated and still get business income onto your 1040.

      But besides that, the Republican arguments continually conflate gross and net income. What is taxed on a 1040 is net income paid to the owner(s) after deductions and expenses. Expenses include parts and materials if you are a manufacturer, rent, employee payroll, etc. And businesses to take of their net income a lot of other stuff including healthcare premiums and money paid into a pension plan. So if a small business owner is getting $250K a year in net income then his/her business is typically pulling in a lot more than that in revenue, and maybe isn't so small after all.

      •  Small businesses to Republicans are more like (3+ / 0-)

        stockbrokers and hedge fund manages, not the corner grocery or restaurant.

        “The future depends entirely on what each of us does every day.” Gloria Steinem

        by ahumbleopinion on Sun Dec 02, 2012 at 09:57:16 AM PST

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        •  That is exactly right (0+ / 0-)

          I've heard it mentioned in the past things like "with fewer than 10 employees".  (they're never specific on purpose, of course).

          But anyway, that would qualify rich people's little splinter businesses to manage their wealth.  So, the Bill Gates Foundation, for example, is a small business to a Republican bullshit artist, because it only has a few employees.  (but zillions of dollars).

          Republicans: Taking the country back ... to the 19th century

          by yet another liberal on Sun Dec 02, 2012 at 10:02:04 AM PST

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      •  Ah, OK, Above My Pay Grade. Thanks nt (0+ / 0-)

        We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

        by Gooserock on Sun Dec 02, 2012 at 10:44:14 AM PST

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        •  Oh Yes and Business Expenses deducted Same as Me (0+ / 0-)

          Yep then gross income is a bigger jump from take home than it would be for a typical wage earner.

          We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

          by Gooserock on Sun Dec 02, 2012 at 10:46:14 AM PST

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    •  LLC's and S-Corps flow through to (0+ / 0-)

      personal taxation of profits or losses... Schedule C sole proprietors pay off their personal to start with.

      C-Corps protect from personal liability, but can create a double taxation effect if profits are substantial.

      After all is said and done, a lot more is said than done.

      by Brahman Colorado on Sun Dec 02, 2012 at 01:15:50 PM PST

      [ Parent ]

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