- Joined
- Aug 28, 2008
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- 15,483
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- North Texas
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- Political Leaning
- Conservative
I don't know a whole lot about owning a business or accounting, so I'm hoping someone can answer this for me...
When someone owns a small business and the business makes a profit of say, $500,000 in one year, what is keeping the owner from paying them self $249,999.99 ( as their personal income and putting the other $250,000.01 into some kind of asset account? I'd think you would be able to pay yourself $249,999.99 and still be considered "middle class" according to Obama's tax plan. If I owned a business I'd likely only pay myself $50k to $100k anyways... the less money I pay myself the more I can put into the business and hopefully make the company more profitable and possibly be able to hire more people. I don't need a luxurious life to be happy. I'm not one to dictate what someone should be making... Just asking questions here.
But I am confused why people are so outraged about a 3-4.6% increase in taxes for a select few when often these same people talk so much about balancing the budget. Cutting government programs is not enough to close the budget gap... and cutting programs is unfortunately a slow process. If the Republicans take over, which I expect they will, I hope they keep their promise and start cutting and changing government programs we don't need at a faster pace than the Dems have been. I have serious doubts though...
Here is the problem. Small business file as S-corporations, and under Obama's plan, he will also tax the $250,000 in that asset account. Small businesses need backup capital, but Obama is going to tax that to at the end of the year.