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Thread: So you started your own small business

  1. #1
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    So you started your own small business

    Congratulation on starting your own business. You've started your very own stationary business, and this makes the government very happy.

    In your first year of operation you did a good job and made over $100,000 dollars. Way to go champ, but wait! Did you really make $100,000 dollars? The government says hold on a second buddy...

    Corporate Tax Rates for 2012 says that if you made over $100K than you must pay the government 39% of that hard earn money. That means the government takes 39 cents for every dollar that you've made.

    So now you've only made $61,000 in your first year of hard work and dedication, but wait! You must now reorder new stationary supplies pencils, ink pens, note pads etc... and the sales tax on that is 8%.

    So lets see, The government takes 39% for their Corporate Tax Rates and another 8% for sales taxes. That's a whopping 47%! of you're new business gone to the government.

    Than you have to pay your employee says minimum wage and he earn $20K a year which is 20% of that 100K you've just made and now you're paying 67% out of that 100K and now down to 33K net profit, but wait! Your employee is stealing from the job which takes up 5% of your profits so now you're only making 28K net profit.


    But wait! Now your employee wants to unionize and demands more money! and now your employee makes more money than you do for owning your very own business. Welcome to America champ!

  2. #2
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    employee wages and business expenses would be deducted from the amount that you pay taxes on
    Last edited by Crazyguy; 06-04-2013 at 19:50. Reason: 'cause i'm nutz

  3. #3
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    You pay 39% on the entire amount, not just on what you make over 100k?
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  4. #4
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    With Bishop... surely in America if you make 150,000 you'd pay 39% on the 50K and the lower tax band on the 100k?

  5. #5
    Game Support Bishop's Avatar
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    Ya, this is what happens - http://en.wikipedia.org/wiki/Corpora...ates#Tax_rates

    I hope the OP doesnt do their own tax returns.
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  6. #6
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    Could the OP please review his rant and tell us the new figures in light of this jaw dropping discovery to tell us if the employee earns more than the owner...

  7. #7
    Game Support Bishop's Avatar
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    Doubtful, looks like an anti-capitalist rant with no substance.
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  8. #8
    Member Puck's Avatar
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    How do you get 'anti-capitalist' from that rant?

    It is attacking taxes and taxes are the mechanism through which governments over-ride free markets and impose a notion of order.

    It would be more realistic to put Baby Orcky in with the Tea Party chumps.

    edit: typo

  9. #9
    Game Support Bishop's Avatar
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    Google it, it appears on tons of anti-capitalist sites. Its terribly flawed anyway
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  10. #10
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    I googled a random grab from the middle of it. It brought me back here. There were no other matches. If you Googled the first line, I can understand where you might get the mistaken view that it's anti-capitalist.

    I would reccommend using your own judgement though.
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  11. #11
    Game Support Bishop's Avatar
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    Welcome to America champ!

    Its not a far stretch to consider that post anti-capitalist. I don't really care though, its a flawed argument either way.
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  12. #12
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    so flawed =s

    expense deductions, progressive tax brackets.
    math is taking a hit today OP

  13. #13
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    LOL! I like how he added the 39% corporate tax and the 8% sales tax to say they're taxed 47%! Learn some math and some logical sense before you try to make a point. You're basically saying that you're using 100% of your pre-tax income to purchase new supplies. That's impossible.
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  14. #14
    Forum Fanatic octobrev's Avatar
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    Dividends are capped at 15%. Set your stupid company up correctly and you wont eat tax. Furthermore, your taxes are calculated after expenses and payroll etc. They don't tax revenue. A company that is in a state of expansion is pretty heavily shielded from tax liability because they're forced to depreciate their long term assets at an accelerated pace.
    Last edited by octobrev; 09-05-2013 at 02:39.
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  15. #15
    Forum Fanatic octobrev's Avatar
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    You could even set up as an LLC (the most common way to start a company in the first place) and not get taxed as a company at all. It runs through your personal income taxes. If you divide that 100k across, say 2 owners, that leaves both of you in a pretty comfortable tax bracket. Corporate taxes are for corporations. Get good badkids.
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