Tax season, and frustration. A personal story.

Yes. I have a salary. It's in the form of draws as my company is an LLC. I don't have a W2.

Sorry, I'm not going to explain US tax and corporation structures for you.

In short, you have no idea what you're talking about.

 

Nope.

I hate that I have you be responsible for nearly 40%of my fruits being confiscated, while many people have effective taxes of single digits.

Why should I be responsible to the brunt of the cost of the society that those people live in?

 

How dare I complain about nearly 40% taxes!

The only reason my story is getting foggy, is because I'm debating with a bunch of people that don't want to focus on the tax issue, and instead want to try to make my claim false, and worse, most of you are clearly mouth pieces for the pro big government agenda but haven't operated anything more complex than a lemonade stand.

 

Exactly.

It's comical that they keep trying to presume I am business ignorant im unsuccessful, but fail tho see that my tax rate is representative of how the government treats you when you are successful.

 

There is no need to explain anything to me. If you are not taking it as W-2 income, it is not a salary, it is a draw, and the IRS is raping you because of your arrogance and ignorance of what happens to business owners who think they can get away with not paying the FICA deductions. You are going to pay it either way. You just elect to do it in the most expensive way possible without getting any additional benefit.

 

So, like a good little liberal, I'll just repost...

They operate under the same tax code as you do. You are as smart as they are. The only difference must be Luck.

 

Not true.

The self employer FICA tax is somewhere around 18.2% to a certain amount of income, then drops to just over 2%. For high wealth earners, the self employment tax realizes that high income earners don't need social security and Medicare to the same degree as low income earners, and as such reduces the contribution level.

This is not a benefit you get as a w-2 employee.

Additionally, my income is taxed only as personal income as an LLC, which is more beneficial if you are in a volatile market.

There are some benefits to transitioning to an s- corp, such as reducing my salary significantly for the purposes of personal income tax, and taking the rest at the lower distribution rate, but the self employment tax isn't one of them.

I probably will transition, as I'm buying another company and it will be easier to keep our books under a transition agreement.

With all of that said, it sounds like you agree that sole proprietors and single member LLCs are over taxed?

 

No, they just don't call out the bullshit.

You know why predominantly most of the successful small business and corporate executives are conservative? Because they think your tax policy sucks.

Ill note that you keep focusing on me, and not the facts surrounding our tax policy. I understand, you know our tax burden sucks for small business, but your idealistic agenda makes you keep towing the status quo.

 

As I said, you enjoy the benefits of society (for example the roads your employees take to come work at your business, or that are used to deliver supplies and ship goods), yet you despise paying for any of it.

Go to Somalia if you don't want to pay taxes. Let's see how far your greatness and your business success will take you there. If it is all you, that clearly shouldn't pose a problem for you, should it? Plus, you could keep ALL the fruits of your success.

BTW: I don't like paying taxes either, but I know that they are a necessity for living in a civilized nation.
BTW2: I can see your condescending attitude, thinking you are the only one successful and that anyone challenging your arguments is a loser who wants part of your money. Newsflash, other people run successful operations too. I run a lab and have to make payroll for my postdocs/grad students. I know how hard it is, so please don't talk down to people you have no idea about what their life experiences are.

 

Calling out bullshit has nothing to do with being successful. Neither does the tax code.

There has always been a FICA cutoff for high wage earners. This is not because "high income earners don't need social security and Medicare to the same degree as low income earners". It is because wealthy political contributors have demanded it.

Social Security benefits are paid out on the basis of income..."The size of your benefit will depend heavily on how much you earned during your working life. Generally speaking, the more you earned, the higher your benefit will be. "

Several people, including myself, have tried to tell you that you have not set up your taxing structure correctly. All we have received in turn is arrogance on your part. Now it seems you realize that an S-Corp is better than a LLC. I guess that's progress.

 

Tax "reform" that does not end the IRS is just political shuck and jive - temporary relief at best.

 

Sure I do. Through taxes.

Everybody else uses those same roads, why don't they have to pay an equal amount? You conveniently keep skirting that point.

Nobody here is advocating for NO taxes. You just keep using that red herring to avoid a conversation about how the burden of the cost of society is not equally applied.

When you are finished with red herring fallacies, and are actually prepared to discuss the real topic here, let me know. [/quote]

From money donated or tax dollars through grants. All of which IS NOT TAXED!

Its a pretty easy pedestal to sit upon to tell everybody else "cough it up, percentage doesn't matter, don't like it move to Somalia" when you clearly operate your own industry under a different set of requirements. No, you don't get to pretend like you have any idea what its like to operate in the private sector under burdensome taxes. Sorry.

Call that condescending, I call it a fact.

So you have operated business under an effective 37% tax rate?

If somebody confiscated 37% of your operating budget for your research operations, you would just smile and say "everybody has to pay some tax". yeah right.

 

Most business owners are fiscally conservative and oppose excess taxation. That's a fact.

Because its logical. Social Security and Medicare are social safety nets. We don't want old people dying in the streets homeless when they are 80.

As is constantly reminded, Social Security is not welfare, its an insurance policy. My premiums SHOULD be capped as based on my earnings and contributions, the payout at the end doesn't result in a higher payout.

To a cap.

Ok, let's talk specifics. How exactly is an S-Corp going to reduce my tax obligations or increase my exemptions to lower my burden?

 

Newsflash, my university "taxes" 53 cents of every dollar coming in through funding. It's called indirect costs. So, again come off your high horse, thinking that you are the only one being burdened.

 

That's called overhead. We have that as well. I keep mine down tho around 24% though.

That isn't tax.