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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Rambi who wrote (90298)	10/16/2008 11:31:23 AM
From: JohnM	Read Replies (2) \| Respond to of 541851

Just saw a short interview Katie Couric did with "Joe" this morning. Joe's not "making" $250k. He says he wants to and may soon do so, but not there yet. And given the size of his house in the background of another clip I saw, he may have a far piece to go as they say around your part of the world. Of course, under Obama's plan, even in its simplest form, the tax raise wouldn't apply until his taxable income was over $250k. Definitely not simply his revenue; which is what he may have been thinking. And there are some small business exceptions in various versions of Obama's plans that make it even less likely he pays serious taxes.

To: Rambi who wrote (90298)	10/16/2008 2:02:19 PM
From: Cogito	Respond to of 541851

>>Are the taxes on Joe taken AFTER his expenses and payroll, etc, and does that mean his profits are 250K and are his alone? Like a salary? Only in the company name? Which is Joe's?<< Rambi - Taxes are paid on profits, but how much of the income is actually Joe's depends on the way he structures his small business. It may be a sole proprietorship, in which case all profits fall directly to Joe's personal income bottom line, a partnership, in which profits are divided among the partners, an LLC, an S Corporation, or a C Corporation. In the case of the latter three, Joe may simply receive a salary from the business and be taxed on that. If anyone with more accounting knowledge than I have spots an error in what I've said here, please let me know. I'm speaking from memory of conversations I've had with my tax guy. - Allen