I read this post by a guy named "northern lights". It is Excellent:
So Joe is concerned with purchasing a business that will "make" $250,000 per year and how he will be taxed. As the owner of a small construction company, let me tell you. First, if your gross receipts are $250,000, you can optimistically net 20% - and that's optimistically after all expenses. So now we get $50,000 of taxable income.
But if you are saying your company will have net profits of $250,000, that means your company grosses $1,250,000. (Really). So let's calculate your taxes using the current tax rate of 36% - $90,000. Let's now calculate taxes at Obama's proposed increase to 39% - $97,500 - an increase of $7,500 a year.
Joe, good luck on that business and let me know when it starts making $1,250,000 million!
No comments:
Post a Comment