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TMlawncare
02-20-2011, 01:03 PM
I find it amazing after working all last year to maximize efficiency you get hammered at the end of the season. Last year we were able to increase gross rev. by 7% at the same time we reduced expenses. We pay in quarterly Federal tax vouchers. Well yesterday I found that all that hard work really adds up. Self employment tax right off the net profit neary 16%. Then off my adjusted gross income comes the federal and state taxes. Federal taxes are around 25%. We have not even talked about how we have to match our employees SS/medicare to the tune of neary 7.5% or unemployment taxes paid each quarter. It is really amazing to continue finding just how much we as business people have to contribute to the system each year. Its no wonder business is stalling in this country. If you add it up almost half of my net income goes to taxes. I wonder if there is maybe another way.

I keep telling my wife we should just quit our jobs. This way our three children and us can move in to goverment subsidized condos that are 3bedroom ($260/per month). These condos get windows,doors, appliances, hvac upgraded every 7-8 years at taxpayers expense. We also wouldn't have to worry about any medical expenses for our children. Medicaid would take care of all expenses with no deductible, copay or 20%. We would get over $650 dollars per month for food on my new food stamp card. Wic covers my childeren food if they are younger then 4. Btw, at the end of the year when I file taxes they give me a refund that exceeds my Federal,State SS/medicare contribution by over $1500. Wow I can work and don't have to pay taxes, SS/medicare or nothing. This little senerio was based off from a family making $33000 per year, not the total lazy welfare mom you might think. Yes us business owners get bent over pretty good. The entitlement programs are getting out of control. I just heard that 50% of the working population will have to pay no taxes/SS/medicare this year. Guess who gets to support the whole population, the other half that works there backsides off. Hmmm.

C4chris70
02-20-2011, 03:07 PM
I feel you pain! We just got hammered ourselves. I will need to find out if becoming an LLC would help me out. The self employment tax just kills me every year.

xclusive
02-20-2011, 04:00 PM
Gotta love the government!! All these lazy ass mofos sittin on their a$$ while we bust our butts to make an honest living for our families. Now talk about a$$ backwards. I think that if you dont contribute then you shouldnt get anything. Too many people milkin the system for everything its got.

PS - sorry for the rant but its really frustrating.

TMlawncare
02-20-2011, 06:05 PM
The way self employment tax works there is no one in the country paying more taxes then a business owner. My uncle the other day seen my as I was getting ready for work at 8 a.m. and asked if I am working all weekend. I said I will try to take it easy on Sunday to spend it with the family. He said he was alway told that you must go out and work because there are so many on welfare depending on you. More true today then ever.

slicknick
02-20-2011, 10:13 PM
I talked to my CPA on Saturday and he said the biggest problem with the Lawn Service industry is that there is no group or union that fights for rights in Washington. He gave me the example that the government tried to make CPAs charge sales tax on their services..they fought it with the government and won. Basically we need to all get together and stand up against this self employment tax and everything else that is drastically unfair.

TMlawncare
02-21-2011, 10:30 AM
The problem is the way the system is set up. They don't like self motivated people that step out and go into business. When you go into business for yourself you step outside someones umbrella. You can make as much money as you want depending how hard you are willing to work and how much you are willing to sacrifice. This approach makes you less dependent on others. You are punished for prosperity. Look at how the tax system is set up. The more money a person makes the higher the tax bracket they stick them in. Now, should they pay more, yes because the made more. The percentage that they pay should be the same regardless. You shouldn't be penalized because you are willing to sacrifice more to make more. It seems like the gov. would like to have us right under their hand. This way they can guide us, steer us and protect us from the unknown. It makes us more equal, more manageable, more powerless. Back in the biblical days, Jesus stated "thou that does not work, does not eat." Now its more like, "if I don't work someone elses family does not get there entitlements."

slicknick
02-21-2011, 10:40 AM
I am very glad that I have the same views as other LCO's!

TMlawncare
02-21-2011, 08:59 PM
I am very glad that I have the same views as other LCO's!

It just seems like the longer I am in business, the more aggrevated I get. It just seems like my family and I make a lot of sacrifices in order to grow our business. We get punished in the end if we are sucessful. On the other hand if we lay on our back there is many hands reaching over to you to make sure you are cared for.

DA Quality Lawn & YS
02-22-2011, 12:14 AM
AMEN to this thread - thanks for posting OP.
Working your buns off to feed the entitlement system is not very gratifying is it?
I can only 179 out so much equipment too yet:)

TMlawncare
02-22-2011, 09:02 PM
I here you. This year we purchased a new Wright stander zk. I planned on depreciating it over the next few years. My tax man had us to just 179 expense the whole cost at once. If we didn't the additional taxes we would have to pay was just numbing.

HHlandscaping
02-23-2011, 12:01 PM
cash is king thats all I got to say

MowHouston
02-24-2011, 12:51 PM
Keep up with your deductions. You can't run a successful business if you don't write off absolutely everything possible. That means vehicles, equipment, advertising, you can write off 50% of your self employment tax as well as 50% of your social security and medicare contributions, fuel taxes... There are tons of things you can deduct to lessen the burden of taxes.
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