Thread: The Income Tax Burden of the Top 1%: A Geographical Perspective

Originally Posted by Taxpayer

Sole proprietorships are individuals -- they aren't separate tax entities. They would loose their deduction because you said you wanted individuals to loose their deductions.

You file a 1099 while I file a w2. You get to expense things I cannot.

You don't get to deduct it, because you didn't pay it.

I didn't? So that check I send assurant health care each month for my private hsa is me not paying it?

If you haven't paid over $7,000 you are not paying your own health care premiums. I'm guessing your employer is. Could be north of $12,000 per employee. That expense, which he may be required by law to pay, is a valid business expense that he's deducting from his income to figure out how much he 'made' running the business. Why would it be less reasonable for him to deduct premiums paid for an employee who happens to also be himself?

Nope; private hsa. I work for a firm of 4. SO why isn't my health care a "valid business expense" that I incur in my business? See your approach is already screwing people over.

Originally Posted by Taxpayer

Pass through just means any profits you pass through to yourself are not taxed. You still need to file separate tax returns for corporations (s or c), and those separate returns are still liable for any minimum taxes. And more significantly, if you don't have a good CPA file them you'll loose money and probably have IRS problems.

You should have a decent cpa in any business.
From: http://taxes.about.com/od/scorporati...p_taxation.htm

An S-Corporation is not subject to corporate tax rates. "Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income," according to the Internal Revenue Service.

Instead, an S-Corporation passes-through profit (or net losses) to shareholders. The business profits are taxed at individual tax rates on each shareholder's Form 1040. The pass-through nature of the income means that the corporation's profits are only taxed once – at the shareholder level. The IRS explains it this way: "On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss."

I don't think you are correct here.

Sole proprietors will get hit, yes. But so will almost everyone else who has any significant expenses. We don't actually tax people on their income. We tax them on the profits of their endeavors. The tradesman who uses his own tools deducts that cost to calculate his profit. The teacher deducts her school supplies, the cop deducts his gun, the sales man deducts his gas, the farmer deducts his mortgage... get rid of those and you're going to mess up a lot of people and few will consider the result 'fair.'

Why can't I deduct my computers then? Why can't I deduct my car, health insurance, clothing etc? Because the tax system is made to screw employees. It unfairly taxes us for everything while providing no benefit.

BTW I doubt cutting off policemens small benefits would kill them, nor would it destroy teachers. The system is broken and a flat tax would fix it.

Originally Posted by danielpalos

I agree. It is one reason why I believe that progressive forms of taxation are necessary to ensure greater diligence on the part of the wealthy concerning public policies in our republic which do not provide for the general welfare and common defense.

That won't happen while class warfare is plank on one side's platform.

Originally Posted by Silkheat

You file a 1099 while I file a w2. You get to expense things I cannot. I didn't? So that check I send assurant health care each month for my private hsa is me not paying it? Nope; private hsa. I work for a firm of 4. SO why isn't my health care a "valid business expense" that I incur in my business? See your approach is already screwing people over.

It's not my approach and you need to talk to your CPA or tax preparer. Your HSA contributions and your premiums are deductible. Not sure how you could be under the limit if you have any real coverage, but talk to your CPA. Prescriptions, co-payments, over the counter prescribed meds, membership fees, and some other things you should look into should make the difference.

Originally Posted by Silkheat

You should have a decent cpa in any business. I don't think you are correct here. Why can't I deduct my computers then? Why can't I deduct my car, health insurance, clothing etc? Because the tax system is made to screw employees. It unfairly taxes us for everything while providing no benefit.

BTW I doubt cutting off policemens small benefits would kill them, nor would it destroy teachers. The system is broken and a flat tax would fix it.

If any of those things are valid and exclusive business expenses you can deduct them. Just understand that if and when you get audited, you're going to be asked to prove that they are. A uniform is easy to prove, there's no purpose for it other than work -- so the auditor won't even blink. A suit... you're going to have a hard time proving that was exclusively for business. If you can't, he'll disallow it. I wouldn't try.

On one hand you're complaining that the system was made to screw over employees, on the other you're arguing screwing over cops and teachers a little is ok. You don't see the irony?

Our tax system is way complicated. Most of those complications have been added over the years by people trying to respond to complaints of unfairness. If you want to be fair you should try and learn about those issues before just suggesting we toss the whole thing out. A weekend tax class at your JC might be a great experience for you and would probably pay for itself in tax savings many times over as you get older. Just a friendly suggestion.

Originally Posted by Silkheat

So societies cannot choose to make changes to the harshness of life? Do we not commune together a provide each other and help each other provide infrastructure, defense, and services for all?

That is why it is called a "Social contract". Why should we decide to let people just die when we can help them? Must blood be shed to the alter of all or none?

I would hardly call SS a limitless gift. It is basic sustenance for most.

first off, if you are seeking "fairness", good luck, it aint never gonna happen, people cant decide on what is fair, much less achieve it.

and no, people arent going to die or starve to death, we dealt with it before SS, and we had much less resources then

Originally Posted by Bluesguy

Why do you assume a business owner who recognizes the cost/expense of the employees he hires cannot also treat them well? One way to keep the cost of those employees low is to make sure you retain the best ones, you don't do that by mistreating them, but they are STILL a cost of doing business.

The fact remains it is the customer that supports your business.

Your first mistake is to think that having employees is a cost. For most businesses that have the best working environment, employees are not treated as cost, but as an investment. And if you treat employees as an investment, the concern of cost takes on a different meaning. Although there are some concerns with cost, you do not look at the bottom figure in the short run, but rather you look at the whole picture in the long run. Most successful businessses have this philosophy, but you do not, unfortuneately.

BTW, you do know that sometimes, your best customers are your employees, right?

Dont you poor peeps worry, Nancy Pelosi knows how to save us all from poverty !!!!!

Originally Posted by BestViewedWithCable

Dont you poor peeps worry, Nancy Pelosi knows how to save us all from poverty !!!!!

I thought Mitt the psychopath knew that? Shoot, the answer to poverty is just buy a couple Caddies for the wify.

Originally Posted by Iriemon

I thought Mitt the psychopath knew that? Shoot, the answer to poverty is just buy a couple Caddies for the wify.

GM workers appreciate buyers of their products. Its why they have a job.

Maybe leftys should get a job and become part of the solution instead of crying for a government handout.