Again, I say if you're willing to take the risk, then you should reap the rewards. When I was 26 I was $250,000 in debt with my business. I HAD to make a lot of money just to pay bills. No government plan to bail me out if I had a bad quarter. I took the risk. My employees made money EVERY week whether I did or not!! I don't have a bit of sympathy for someone complaining that business owners get 'breaks'. They deserve them!

They are no so much breaks as conditions.

condition 1) a self employed person pays 2x the amount of social security and Medicare tax as any employee.

condition 2) if you spend money in the right areas, you can get a deduction for some of the money you spend, but only up to the % of business use.

condition 3) your "net income" which is the basis for tax as defined by the IRS 1040 rules has only little to do with net income.

condition 4) see condition 2

condition 5) putting in long hours guarantees that the fruits of your labor will primarily benefit the tax man. Refer to the document above for guidance.....

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...Tracy

'00 ML320 "Casper"
'92 400E "Stella"

The stats are not surprising from an individual federal income tax perspective. Infact, this has been the case for a long time, however, where's the stats on the effect of state and local taxes on citizens and more importantly, corporations? Does anyone know how much Microsoft pay, or Daimler-Chrysler, Proctor & Gamble?

Good Lord, I can't believe I'm in the top 10% in income. I must be doing better than I thought I was...

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Paul S.

2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.

1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".

Why should taxes be paid as percentages anyways? Why not a flat tax for everyone? Do I receive more benefit from tax dollars than my neighbors that make less money? I don't think so. If you can't carry your load, then too bad.....

Exactly.

Forbes was the only guy going around talking about the flat tax, and nobody listened to him.

Take 10%.

If I make $100,000 / year, then I'd pay $10,000 in taxes.

If someone else makes $50,000 / year, then he'd pay only $5,000 in taxses.

I make 2 times more than the other guy, but then he makes 1/2 of what I do.

What can be fairer than that?

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Paul S.

2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.

1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".

I'll tell you what could be fairer than that -- everyone pays $10 - 15K/ year in taxes -- no matter who you are. Or graduate the amount based on age -- not income.

My recall is the Forbes' proposed flat tax was 17%. Believe me, the high income (high income != wealthy) salivate at the prospect of tax rates that low. I'm not willing to disclose where in the income strata my family falls (spouse works too), but with the difference between what I pay under the present system and a flat tax, I could probably buy a new E-class every year with the savings.

Well, maybe every other year

Of course, the social security payroll tax is highly regressive, so perhaps that somewhat levels the playing field. Of course, high income folks are subsidizing it too. High earners will see negative return on their lifetime social security "investment", while low earners have a substantial portion of their income guaranteed, without making a significant contribution toward that guarantee.

Nothing judgemental intended, that's just the dollars and sense as I understand them. Stir in some social policy and it becomes a whole different debate.

- JimY

Never believe what people tell you until you see their tax returns. Then, you have to consider if all their deductions are legal. You always hear people bragging about what they write off, but you rarely hear them talking about being audited 3 years later and having to pay back taxes, etc.

The wealthy get to pay more because they demand more of their government. They want a computer in every classroom, they want a winning high school football team, they want free covered municipal parking, they want their "Main Street USA" to look like the cover of a Currier and Ives catalog. The wealthy want, pay, and get.

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

Sounds like your hometown T

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

Why do they still live there? Do they have more schoolgoing kids or do you get membership to the country club if you live there? Frankly, I wouldn't feel good about paying 5k a year in property taxes and not needing any services.

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

I had a girlfriend who lived on Minnehaha. The park and trails were right across the street, it's avery nice area.

They should pay whatever rate is right on the borderline of the decision... "stay in the USA" or "move to a tax haven like Leichtenstein". This is the ideal balance. Germany pushed it too far at 52%, Austria has found a balance at 44% (where Germans actually move to Austria to escape taxes). So therefore I will say 44%.

I'm sorry, but could you explain your logic behind that? Why should the rich subsidize the poor? Why should anyone who works hard and earns a good living have to support some piece of crap that does as little as possible (or even less) to survive? I still say that everyone should pay the same amount of federal tax, regardless of income. The people that don't have enough left to survive can make the move to Liechtenstein...