Taxes - where should top tax rate be set and at what %?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's very easy to pay no taxes if you don't get a W-2. You set everything up as a business, run all passive income (dividends, cap gains, rental income, etc) through the business and charge all your expenses to the business and zero everything out. That's the goal of every CPA.

As a business owner I can assure you that what you wrote is BS.

I also own a business, and you can only deduct business expenses. What about rent, food, clothing, the repairman for your A/C, a movie ticket, dinner out with friends, gas, vacations, etc.? (You can deduct housing expenses proportionate to the space allocated for your business, if applicable.) If a CPA is advising what you suggest, it's tax fraud.

The tax system clearly favors businesses over individuals, and the argument of whether or not it should is separate. Businesses earn income, expense everything, and pay taxes on the smaller amount of net/taxable income that's left over. Individuals pay taxes mostly on gross income, and then pay expenses out of what's left. And of course businesses deduct all kinds of expenses that individuals can't, and its not fraud. For example, a business owner will often expense his car payment (lease) and cell phone, both of which reduce taxable income. An individual, again, is taxed first and then pays for his car and cell phone.

[Anonymous]

It is so sad to see how many people here think government and taking what others earn is the answer. We used to be a country of opportunity and now we've become a county of entitlement. We used to strive to guarantee equal opportunity and now so many want to guarantee equal outcomes. There's no one that's owed anything by government, by society, or by other productive workers. Income redistribution is a disincentive to production.

[Anonymous]

As previously stated, the US is collecting record amounts of taxes. Record amounts! We do not have a taxing problem. We have a spending problem.

[Anonymous]

Anonymous wrote:As previously stated, the US is collecting record amounts of taxes. Record amounts! We do not have a taxing problem. We have a spending problem.

I would agree with this to a certain extent. Too much money has been spent on the Military-Industrial complex/security theater, health care is badly managed & costs not negotiated intelligently, grossly over-subsidizing agriculture and real estate, and bailing out financial institutions. We have a Congress that willingly flushes money down the toilet while cutting spending on investments that generate future wealth for the US (infrastructure, R&D, and affordable high-quality education).

The wars of the last 15 years will be an unending pit of the unproductive spending. We need to cut back military spending. A LOT.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's very easy to pay no taxes if you don't get a W-2. You set everything up as a business, run all passive income (dividends, cap gains, rental income, etc) through the business and charge all your expenses to the business and zero everything out. That's the goal of every CPA.

As a business owner I can assure you that what you wrote is BS.

I also own a business, and you can only deduct business expenses. What about rent, food, clothing, the repairman for your A/C, a movie ticket, dinner out with friends, gas, vacations, etc.? (You can deduct housing expenses proportionate to the space allocated for your business, if applicable.) If a CPA is advising what you suggest, it's tax fraud.

The tax system clearly favors businesses over individuals, and the argument of whether or not it should is separate. Businesses earn income, expense everything, and pay taxes on the smaller amount of net/taxable income that's left over. Individuals pay taxes mostly on gross income, and then pay expenses out of what's left. And of course businesses deduct all kinds of expenses that individuals can't, and its not fraud. For example, a business owner will often expense his car payment (lease) and cell phone, both of which reduce taxable income. An individual, again, is taxed first and then pays for his car and cell phone.

But it has to be that way for a business. For example, if you're salaried at $100k, your employer provides the computers, supplies, pays for repairs, pays for your staff, pays the rent, etc. Your salary is your "real" earnings. But if you own a business (I do), you have all these expenses, and it's only after you deduct them that you get to your "real" earnings. For example, let's say I gross $300k, but out of that I pay for an employee, rent, utilities, business insurance, and so forth, and end up $100k for myself. THAT is my "real" earnings. If I were taxed on gross revenues, I'd easily have to pay $80k - leaving me with $20k.

The only advantage to businesses over individuals come when they cheat and deduct expenses they should not. I have an exceedingly honest CPA, and I follow his directions to the letter.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's very easy to pay no taxes if you don't get a W-2. You set everything up as a business, run all passive income (dividends, cap gains, rental income, etc) through the business and charge all your expenses to the business and zero everything out. That's the goal of every CPA.

As a business owner I can assure you that what you wrote is BS.

I also own a business, and you can only deduct business expenses. What about rent, food, clothing, the repairman for your A/C, a movie ticket, dinner out with friends, gas, vacations, etc.? (You can deduct housing expenses proportionate to the space allocated for your business, if applicable.) If a CPA is advising what you suggest, it's tax fraud.

The tax system clearly favors businesses over individuals, and the argument of whether or not it should is separate. Businesses earn income, expense everything, and pay taxes on the smaller amount of net/taxable income that's left over. Individuals pay taxes mostly on gross income, and then pay expenses out of what's left. And of course businesses deduct all kinds of expenses that individuals can't, and its not fraud. For example, a business owner will often expense his car payment (lease) and cell phone, both of which reduce taxable income. An individual, again, is taxed first and then pays for his car and cell phone.

But it has to be that way for a business. For example, if you're salaried at $100k, your employer provides the computers, supplies, pays for repairs, pays for your staff, pays the rent, etc. Your salary is your "real" earnings. But if you own a business (I do), you have all these expenses, and it's only after you deduct them that you get to your "real" earnings. For example, let's say I gross $300k, but out of that I pay for an employee, rent, utilities, business insurance, and so forth, and end up $100k for myself. THAT is my "real" earnings. If I were taxed on gross revenues, I'd easily have to pay $80k - leaving me with $20k.

The only advantage to businesses over individuals come when they cheat and deduct expenses they should not. I have an exceedingly honest CPA, and I follow his directions to the letter.

Under this theory, the car I drive to work and the clothes I wear and the childcare that is necessary (more than $5k) should be deductible. The code does favor entities over people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's very easy to pay no taxes if you don't get a W-2. You set everything up as a business, run all passive income (dividends, cap gains, rental income, etc) through the business and charge all your expenses to the business and zero everything out. That's the goal of every CPA.

As a business owner I can assure you that what you wrote is BS.

I also own a business, and you can only deduct business expenses. What about rent, food, clothing, the repairman for your A/C, a movie ticket, dinner out with friends, gas, vacations, etc.? (You can deduct housing expenses proportionate to the space allocated for your business, if applicable.) If a CPA is advising what you suggest, it's tax fraud.

The tax system clearly favors businesses over individuals, and the argument of whether or not it should is separate. Businesses earn income, expense everything, and pay taxes on the smaller amount of net/taxable income that's left over. Individuals pay taxes mostly on gross income, and then pay expenses out of what's left. And of course businesses deduct all kinds of expenses that individuals can't, and its not fraud. For example, a business owner will often expense his car payment (lease) and cell phone, both of which reduce taxable income. An individual, again, is taxed first and then pays for his car and cell phone.

But it has to be that way for a business. For example, if you're salaried at $100k, your employer provides the computers, supplies, pays for repairs, pays for your staff, pays the rent, etc. Your salary is your "real" earnings. But if you own a business (I do), you have all these expenses, and it's only after you deduct them that you get to your "real" earnings. For example, let's say I gross $300k, but out of that I pay for an employee, rent, utilities, business insurance, and so forth, and end up $100k for myself. THAT is my "real" earnings. If I were taxed on gross revenues, I'd easily have to pay $80k - leaving me with $20k.

The only advantage to businesses over individuals come when they cheat and deduct expenses they should not. I have an exceedingly honest CPA, and I follow his directions to the letter.

Under this theory, the car I drive to work and the clothes I wear and the childcare that is necessary (more than $5k) should be deductible. The code does favor entities over people.

No, because even as a business owner, I cannot deduct the clothes I wear and my commuting expenses. The only transportation costs I can deduct are directly for the business - like driving to a client - but not driving to work. Childcare is not a deductible business expense either, any moreso then it is for you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's very easy to pay no taxes if you don't get a W-2. You set everything up as a business, run all passive income (dividends, cap gains, rental income, etc) through the business and charge all your expenses to the business and zero everything out. That's the goal of every CPA.

As a business owner I can assure you that what you wrote is BS.

I also own a business, and you can only deduct business expenses. What about rent, food, clothing, the repairman for your A/C, a movie ticket, dinner out with friends, gas, vacations, etc.? (You can deduct housing expenses proportionate to the space allocated for your business, if applicable.) If a CPA is advising what you suggest, it's tax fraud.

The tax system clearly favors businesses over individuals, and the argument of whether or not it should is separate. Businesses earn income, expense everything, and pay taxes on the smaller amount of net/taxable income that's left over. Individuals pay taxes mostly on gross income, and then pay expenses out of what's left. And of course businesses deduct all kinds of expenses that individuals can't, and its not fraud. For example, a business owner will often expense his car payment (lease) and cell phone, both of which reduce taxable income. An individual, again, is taxed first and then pays for his car and cell phone.

PP, you really don't know much about this. And to correct you would take too much time. So, let's just take one area.

A business, and the majority are not corporations so you should specify which before lumping them as one entity, deducts the cost of doing business. They can only expense according to IRS guidelines. Those guidelines are fairly extensive and limiting. As a business owner of a LLC I can only deduct things purchased for my business, cost of advertising, rent, utilities...things directly related to my business. I can deduct some mileage but again, there are rules and logs that have to be kept. What's left is what I pay taxes on as personal income. That's called net income for the business and gross income on my personal. And btw, where your company matches your social security, I pay 100%, not half. I am allowed to deduct half for purposes of income tax liability but that doesn't cover it, just part.

And NO ONE pays tax on their gross income. At the very least they get to take a personal exemption and a general deduction in lieu of itemizing deductions or they itemize. Then they pay taxes on the net after deductions. Some then get credits such as the child tax credit. So, guess what, me, a business owner, takes my gross income, my personal exemptions etc. and pays taxes in full. After that I pay my utilities, car payments, insurance on the cars and house...just like the rest who get a W-2.

[Anonymous]

Here's the thing about this - to those that are demanding the rich pay more? The rich have their money squirreled away with little tax impact. What do you think all those production companies in Hollywood are for?

[Anonymous]

All of these experts on businesses and taxation etc. crack me up. As a business owner I don't let out a shout of glee because a printer or computer went out and now I can buy one and deduct it. Or when the utility bill comes I don't smile and think of what I won't have to add to a 1099. Every dollar I spend is less in my pocket. Sure, some money is spent to increase business but some is a matter of operating my business. Would I go back to being employed? No. But I saved over the years then sunk a chunk of money into buying a business and then sweated out the payments over the years to pay it off while investing into my business. There were sleepless nights and 70 hour weeks but I am blessed with a good income now and I am able to provide opportunities for others. Of course I do this by cheating on deductions and not paying taxes like the 'common' person. It's actually quite the opposite. I use a CPA and account for every penny spent and I pay a LOT in taxes.

Now, as for major corporations, that's a different story but the blame for that lays upon the shoulders of elected officials from both sides of the aisle.

[Anonymous]

Anonymous wrote:Here's the thing about this - to those that are demanding the rich pay more? The rich have their money squirreled away with little tax impact. What do you think all those production companies in Hollywood are for?

Another example of nonsense.

[Anonymous]

I really liked Herman Cain's 9-9-9 plan. Very sensible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's very easy to pay no taxes if you don't get a W-2. You set everything up as a business, run all passive income (dividends, cap gains, rental income, etc) through the business and charge all your expenses to the business and zero everything out. That's the goal of every CPA.

As a business owner I can assure you that what you wrote is BS.

I also own a business, and you can only deduct business expenses. What about rent, food, clothing, the repairman for your A/C, a movie ticket, dinner out with friends, gas, vacations, etc.? (You can deduct housing expenses proportionate to the space allocated for your business, if applicable.) If a CPA is advising what you suggest, it's tax fraud.

The tax system clearly favors businesses over individuals, and the argument of whether or not it should is separate. Businesses earn income, expense everything, and pay taxes on the smaller amount of net/taxable income that's left over. Individuals pay taxes mostly on gross income, and then pay expenses out of what's left. And of course businesses deduct all kinds of expenses that individuals can't, and its not fraud. For example, a business owner will often expense his car payment (lease) and cell phone, both of which reduce taxable income. An individual, again, is taxed first and then pays for his car and cell phone.

PP, you really don't know much about this. And to correct you would take too much time. So, let's just take one area.

A business, and the majority are not corporations so you should specify which before lumping them as one entity, deducts the cost of doing business. They can only expense according to IRS guidelines. Those guidelines are fairly extensive and limiting. As a business owner of a LLC I can only deduct things purchased for my business, cost of advertising, rent, utilities...things directly related to my business. I can deduct some mileage but again, there are rules and logs that have to be kept. What's left is what I pay taxes on as personal income. That's called net income for the business and gross income on my personal. And btw, where your company matches your social security, I pay 100%, not half. I am allowed to deduct half for purposes of income tax liability but that doesn't cover it, just part.

And NO ONE pays tax on their gross income. At the very least they get to take a personal exemption and a general deduction in lieu of itemizing deductions or they itemize. Then they pay taxes on the net after deductions. Some then get credits such as the child tax credit. So, guess what, me, a business owner, takes my gross income, my personal exemptions etc. and pays taxes in full. After that I pay my utilities, car payments, insurance on the cars and house...just like the rest who get a W-2.

Yup! I'm a business owner, too, and it's amazing how people think we get away with all these great ways to save money and/or avoid taxes. I can't tell you how many times I've been out to dinner with a friend, and she'll say....well, I can just have my business pay for it. No....first, I can't just have my business pay for it since it's not business related. And second, do they think that when my " business pays for whatever" (legitimately, as a valid expense) that it's not costing me anything? It's money I won't have to pay taxes on, but it's still an expense that ultimately lowers my net income.

As I read over a lot of these threads, I see a lot of "politics of envy".....the whites have white privilege and enjoy all great perks....no, the blacks get easier admissions to schools and jobs...no, the business owners get all sorts of breaks over employees....etc., etc. Maybe we should all admit that the grass only LOOKS greener on the other side, and until you actually experience the position, you don't really understand the advantages and disadvantages

[Anonymous]

Anonymous wrote:

Anonymous wrote:Married couples earning more than $150k should be paying 45% or 50% on all income above $150k.

Obviously, the brackets would be adjusted accordingly, but that's a rough idea where it should be.

Why? On what basis do you think it is acceptable to "confiscate" 50% of anyone's earnings?

DH and I both work normal jobs (engineer and program manager) and both make around 100k. I'd be pissed if someone took 50% of my income because DH and I were married. We would immediately divorce so we wouldn't have to pay 50% taxes. Completely unfair to married persons. Frankly, the poor have figured this out that it doesn't pay to be married and that's the number one reason people aren't getting married in the lower class. Who would want to give away any subsidies they receive just for getting married?

[Anonymous]

Anonymous wrote:It is so sad to see how many people here think government and taking what others earn is the answer. We used to be a country of opportunity and now we've become a county of entitlement. We used to strive to guarantee equal opportunity and now so many want to guarantee equal outcomes. There's no one that's owed anything by government, by society, or by other productive workers. Income redistribution is a disincentive to production.

The highest marginal tax rate under Eisenhower was 91% on income that would be the equivalent of $1,000,000. Canada and Germany seem to be doing quite well. Practice what you preach and stop working if our policies are such a disincentive.