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Old 11-05-2008, 04:58 PM
Brian Carlton Brian Carlton is offline
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Join Date: May 2002
Location: Blue Point, NY
Posts: 25,390
Quote:
Originally Posted by aklim View Post
I see. So your point is that you can tax me more because I am a small business owner and I will not be able to move my business overseas (captive audience) and it will not have any effect on whether I hire someone or not? How did you come to that conclusion, may I ask? Lets say I am a Sub S and the profits go to me directly. Lets use some small round numbers. This year, I cleared say $100K and am taxed $20K. That leaves me $80K. Next year, you want to tax me $25K and it leaves me $75K. What you are saying is that I will just lump it and take $75K without trying to take more out of the business to make the 80K?
Let's use some real round numbers.

This year you have a taxable income of $400K and you have a marginal tax rate of 36% on the income from $250K to $400K........total tax of $54K.

Next year you again have a taxable income of $400K and Obama raised the marginal rate to 39.5% for income above $250K. Your marginal tax rises from $54K to $59.25K.

Now, try to make a case for firing an employee because you, personally are short $5.25K

Total BS.........as I told you.
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