How Will Your Life Change If Obama Wins?

[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?

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.

Obama's not good with giving sound-byte answers. That's what they mean when they refer to him as 'professorial' in the debates. McCain reduces what he wants you to think to a sound-byte.

As the discussion here has shown you, the answers can't be fully spelled out in 2-minutes-for-him, 2-minutes for him, 5 minutes for rebuttal. Not the real answers.

[PlatyPius 5]

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.

Well, let's see....

The bike shop I work for has receipts of approximately $750,000/year. So, a raw gross of 3/4 million. Factor in returns, promotions and such to get a gross business income of - say - $700,000. Mark-up on bikes is typically 30-50%. Mark-up on accessories is almost always 50%. So, say 50% is actual profit - $350,000. Take away 39% ($273,000) of the GROSS (for taxes on gross income, as you propose) and that leaves 11% ($77,000) for the owner, payroll, and business expenses. I don't think that would fly in ANY country. Nor would anyone be in business for long. Considering that our electric bill is in the neighbourhood of $1500/month, gas is about $1000, and rent is $3000....

So...... no, that is NOT taken off of gross income.

[Heracles 417]

Things I'm reading here give the impression that some think that the rich will give up their privilege, ownership, and influence, either willingly or forcibly, under an Obama administration, and that the masses will attain a higher status and more control over finance and the means of production. Some expect a soft revolution. I find this to be very interesting.

What are your thoughts?

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.

Which is why the rate should go to a reasonable 45%.

Using your example, under Obam's plan someone would forfeit 1.2 days worth of income to pay for the extra tax. :crying: I don't know how my poor manager will cope.

Edited October 22, 2008 by Aficionado