If you hadn’t noticed, the market was body slammed today. Last week’s “mark-‘em-up-into-the-month-end-close” rally is over. Now that the month’s good close is behind us, the market can get back to fretting over oil and daily gasoline price hikes at the pump. The S&P closed down -1.55%.
This tax news came out yesterday and may have flown under the radar for most: Tax-Cheatin-Timmy wants to raise your taxes if you are self-employed.
“Congress,” says Geithner, “has to revisit this basic question about whether it makes sense for us as a country to allow certain businesses to choose whether they’re treated as corporations for tax purposes.”
Small businesses can currently choose to be taxed as a corporation or a variety of other ways such as; partnerships, S-corps, and others. But the guy at the IRS who CHEATED ON HIS OWN TAXES, believes the government shouldn’t give you a choice to be an S-corp and should be DOUBLE taxed.
According to some reports, Tax-Cheatin-Timmy believes his idea would allow the government to tax an additional $3 trillion.
Let’s assume you own a small business and then make the “crazy” assumption that you pay yourself, you would be double taxed as follows.
$100,000 gross
-$15,000 FICA/Medicare
-$29,750 Corporate Income Tax (35%)$55,250 is the balance which will be taxed again
-$19,338 for Personal Taxes (35%)
You now have $35,912 net income (36% of the gross) to be taxed by the state, county and city.
Boy-howdy this sounds like a great jobs builder! Luckily small businesses don’t generate (cough) many (cough, COUGH) jobs.
This tax news came out yesterday and may have flown under the radar for most: Tax-Cheatin-Timmy wants to raise your taxes if you are self-employed.
“Congress,” says Geithner, “has to revisit this basic question about whether it makes sense for us as a country to allow certain businesses to choose whether they’re treated as corporations for tax purposes.”
Small businesses can currently choose to be taxed as a corporation or a variety of other ways such as; partnerships, S-corps, and others. But the guy at the IRS who CHEATED ON HIS OWN TAXES, believes the government shouldn’t give you a choice to be an S-corp and should be DOUBLE taxed.
According to some reports, Tax-Cheatin-Timmy believes his idea would allow the government to tax an additional $3 trillion.
Let’s assume you own a small business and then make the “crazy” assumption that you pay yourself, you would be double taxed as follows.
$100,000 gross
-$15,000 FICA/Medicare
-$29,750 Corporate Income Tax (35%)$55,250 is the balance which will be taxed again
-$19,338 for Personal Taxes (35%)
You now have $35,912 net income (36% of the gross) to be taxed by the state, county and city.
Boy-howdy this sounds like a great jobs builder! Luckily small businesses don’t generate (cough) many (cough, COUGH) jobs.
Trade Date: 3/1/11
E-Mini S&P Trades*
(before fees and commissions):
E-Mini S&P Trades*
(before fees and commissions):
|
Sign up as an AvidTrader Member to receive "The Technician" Value Area's each day. The market then has an 80% chance of filling the Value Area. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. Join and see how this technique can help you trade more successfully!
No comments:
Post a Comment