How Will Your Life Change If Obama Wins?

[mawilson 2,133]

Income above $250,000 would be subject to a 39% tax, instead of the current 36% rate.

If you make $300,000, your Federal tax will increase by $1,500. OMFG.

That's about it.

I'm so scared! Gosh!

Are you kidding me?! That kind of scary socialist income-redistribution wealth-spreading tax increase

would totally put Joe the Plumber out of business. His American dream of cleaning septic tanks and

cesspools would be shattered!

So... Joe's business was going to rake in $270,000 a year estimated. That's going to raise his tax bill by $600. This is what dominated the debate this other night? A 0.2% income tax hike?

Not even that. Only the AGI (Adjusted Gross Income) is taxed - that is your gross income minus all the deductions.

For your AGI to be over $250,000, your actual gross income would have to be over $300,000.

[Peikko 1,575]

Seriously, do people have no idea how their tax system works? But, you guys all do your own tax returns too...that's weird.

[rebeccajo 14]

Income above $250,000 would be subject to a 39% tax, instead of the current 36% rate.

If you make $300,000, your Federal tax will increase by $1,500. OMFG.

That's about it.

I'm so scared! Gosh!

Are you kidding me?! That kind of scary socialist income-redistribution wealth-spreading tax increase

would totally put Joe the Plumber out of business. His American dream of cleaning septic tanks and

cesspools would be shattered!

So... Joe's business was going to rake in $270,000 a year estimated. That's going to raise his tax bill by $600. This is what dominated the debate this other night? A 0.2% income tax hike?

Not even that. Only the AGI (Adjusted Gross Income) is taxed - that is your gross income minus all the deductions.

For your AGI to be over $250,000, your actual gross income would have to be over $300,000.

Do the masses know that Joe can also pay himself a salary and write it off BEFORE he gets to that magical $250,000.00?

[dalegg 143]

Seriously, do people have no idea how their tax system works? But, you guys all do your own tax returns too...that's weird.

I wouldn't say I actually do it. Turbo tax is really doing all of the thinking. I just put in the values and wait for the results! I've got to tell you that in all my years I have never known this and I am positive that I am not alone. It really just never occurred to me since I don't think I'm close to any of the higher brackets anyway.

[dalegg 143]

Income above $250,000 would be subject to a 39% tax, instead of the current 36% rate.

If you make $300,000, your Federal tax will increase by $1,500. OMFG.

That's about it.

I'm so scared! Gosh!

Are you kidding me?! That kind of scary socialist income-redistribution wealth-spreading tax increase

would totally put Joe the Plumber out of business. His American dream of cleaning septic tanks and

cesspools would be shattered!

So... Joe's business was going to rake in $270,000 a year estimated. That's going to raise his tax bill by $600. This is what dominated the debate this other night? A 0.2% income tax hike?

Not even that. Only the AGI (Adjusted Gross Income) is taxed - that is your gross income minus all the deductions.

For your AGI to be over $250,000, your actual gross income would have to be over $300,000.

I can't remember exactly what it was, but the guy on the radio mentioned that small businesses would also get some sort of credit under Obama that they wouldn't get under McCain which would actually net his taxes even lower. Have you heard of this?

[mawilson 2,133]

Income above $250,000 would be subject to a 39% tax, instead of the current 36% rate.

If you make $300,000, your Federal tax will increase by $1,500. OMFG.

That's about it.

I'm so scared! Gosh!

Are you kidding me?! That kind of scary socialist income-redistribution wealth-spreading tax increase

would totally put Joe the Plumber out of business. His American dream of cleaning septic tanks and

cesspools would be shattered!

So... Joe's business was going to rake in $270,000 a year estimated. That's going to raise his tax bill by $600. This is what dominated the debate this other night? A 0.2% income tax hike?

Not even that. Only the AGI (Adjusted Gross Income) is taxed - that is your gross income minus all the deductions.

For your AGI to be over $250,000, your actual gross income would have to be over $300,000.

Do the masses know that Joe can also pay himself a salary and write it off BEFORE he gets to that magical $250,000.00?

I'm assuming his business is an LLC, not a Corp, and so is generally taxed as a "pass-through" entity.

[Peikko 1,575]

Don't tell me you are a tax inspector? Gosh!

[ace13 0]

I have sat back quietly, but I can't anymore.

Those of you that think they understand the tax plan of Obama cannot possibly understand it because he has yet to explain the details of it. He has not explained if the 250K on businesses and individuals is net or gross. If it is of all receipts, than over 99% of businesses will receive a tax increase. That would be hugely detrimental to our already fragile economy. To top that off, he has stated that he would hold off on his tax plans if the economy was in trouble....ummmm...if his tax plan is bad under a struggling economy why would we ever want it...even if it was looking a little better...a bad economic plan is a bad economic plan. He himself admits it would make things worse. No one knows what he is really proposing because he will not say! That is what is so terrifying about this gentleman...he plays to the heart strings of many trying to get the vote, not to do what is best for the United States.

[rebeccajo 14]

How a pass-through entity works:

http://www.profit501.com/pass-through-entities/6/

"If you run a business as a sole proprietor under your own name or as a DBA, you’ll have to pay self-employment taxes on the money you make because it all shows up as your salary. By using a pass-through entity you can pay yourself a reasonable salary (which you’ll pay all the regular taxes on) and then take the rest of the profit out as investment income (which you won’t pay self-employment taxes on)."

I have sat back quietly, but I can't anymore.

Those of you that think they understand the tax plan of Obama cannot possibly understand it because he has yet to explain the details of it. He has not explained if the 250K on businesses and individuals is net or gross. If it is of all receipts, than over 99% of businesses will receive a tax increase. That would be hugely detrimental to our already fragile economy. To top that off, he has stated that he would hold off on his tax plans if the economy was in trouble....ummmm...if his tax plan is bad under a struggling economy why would we ever want it...even if it was looking a little better...a bad economic plan is a bad economic plan. He himself admits it would make things worse. No one knows what he is really proposing because he will not say! That is what is so terrifying about this gentleman...he plays to the heart strings of many trying to get the vote, not to do what is best for the United States.

Tax the gross income?

Believe me, if the GOP had the merest whiff that such a change was part of the Democratic platform, we'd know about it.

Did you hear that on talk radio?

[mawilson 2,133]

I have sat back quietly, but I can't anymore.

Those of you that think they understand the tax plan of Obama cannot possibly understand it because he has yet to explain the details of it. He has not explained if the 250K on businesses and individuals is net or gross.

He has explained it and it *is* AGI.

Obama Tax Plan

The top two income tax brackets would return to their 1990’s levels of 36% and 39.6%.

All other tax brackets would remain as they are today. Obama would also restore the 1990’s

levels for the personal exemption and itemized deduction phaseouts (known as PEP and Pease).

Obama would work with the Treasury Department to adjust the thresholds of these rates slightly

to ensure that no married couple making less than $250,000 (or single making less than $200,000)

was affected by these changes.

[rebeccajo 14]

ace13....

Citizens aren't taxed on their personal gross income.

In case you were unsure.

[mawilson 2,133]

How a pass-through entity works:

http://www.profit501.com/pass-through-entities/6/

"If you run a business as a sole proprietor under your own name or as a DBA, you’ll have to pay self-employment taxes on the money you make because it all shows up as your salary. By using a pass-through entity you can pay yourself a reasonable salary (which you’ll pay all the regular taxes on) and then take the rest of the profit out as investment income (which you won’t pay self-employment taxes on)."

Right. Of course if he pays himself a salary and takes out the rest of the profit

as investment income, he will be subject to Barack's new higher capital gains tax

[dalegg 143]

How a pass-through entity works:

http://www.profit501.com/pass-through-entities/6/

"If you run a business as a sole proprietor under your own name or as a DBA, you’ll have to pay self-employment taxes on the money you make because it all shows up as your salary. By using a pass-through entity you can pay yourself a reasonable salary (which you’ll pay all the regular taxes on) and then take the rest of the profit out as investment income (which you won’t pay self-employment taxes on)."

I have sat back quietly, but I can't anymore.

Those of you that think they understand the tax plan of Obama cannot possibly understand it because he has yet to explain the details of it. He has not explained if the 250K on businesses and individuals is net or gross. If it is of all receipts, than over 99% of businesses will receive a tax increase. That would be hugely detrimental to our already fragile economy. To top that off, he has stated that he would hold off on his tax plans if the economy was in trouble....ummmm...if his tax plan is bad under a struggling economy why would we ever want it...even if it was looking a little better...a bad economic plan is a bad economic plan. He himself admits it would make things worse. No one knows what he is really proposing because he will not say! That is what is so terrifying about this gentleman...he plays to the heart strings of many trying to get the vote, not to do what is best for the United States.

Tax the gross income?

Believe me, if the GOP had the merest whiff that such a change was part of the Democratic platform, we'd know about it.

Did you hear that on talk radio?

Well, kind of sort of we have- and this is what bothers me. As Ace states, Obama has been a little ambiguous about this, although maybe somewhere his details are posted in writing (probably). Some of this ambiguity is puzzling to me because it appears that the actual tax plan he is proposing is really a winner with the voters. Maybe he thinks its too complicated. What bothers me most though, is that McCain comes off in debates as if he knows Obama's tax plan better than Obama himself. If we don't know what he's going to do, how can McCain know? He doesn't say Obama might increase your taxes, he says Obama will increase your taxes. There's no evidence for that that I can see. It's fear mongering. This election sucks.

Edited October 22, 2008 by dalegg

[rebeccajo 14]

How a pass-through entity works:

http://www.profit501.com/pass-through-entities/6/

"If you run a business as a sole proprietor under your own name or as a DBA, you’ll have to pay self-employment taxes on the money you make because it all shows up as your salary. By using a pass-through entity you can pay yourself a reasonable salary (which you’ll pay all the regular taxes on) and then take the rest of the profit out as investment income (which you won’t pay self-employment taxes on)."

Right. Of course if he pays himself a salary and takes out the rest of the profit

as investment income, he will be subject to Barack's new higher capital gains tax

But...but....

In Trickle-Down economics, business owners don't take out the profit as income! They reinvest it in jobs!

[mawilson 2,133]

How a pass-through entity works:

http://www.profit501.com/pass-through-entities/6/

"If you run a business as a sole proprietor under your own name or as a DBA, you’ll have to pay self-employment taxes on the money you make because it all shows up as your salary. By using a pass-through entity you can pay yourself a reasonable salary (which you’ll pay all the regular taxes on) and then take the rest of the profit out as investment income (which you won’t pay self-employment taxes on)."

Right. Of course if he pays himself a salary and takes out the rest of the profit

as investment income, he will be subject to Barack's new higher capital gains tax

But...but....

In Trickle-Down economics, business owners don't take out the profit as income! They reinvest it in jobs!

But of course!