Hard Working equals More Taxes

[tiedeman]

Does anybody see anything wrong with this but myself? Maybe I noticed it more this year because I am going to fall under a higher tax bracket, but why is it when you work harder to have more money, the government taxes you more?

[tiedeman]

the other thing is why put together a tight budget, because when you put together a tight budget, more of your net income will get taxed.

A guy on here a while ago talked about investing that money back into the company instead of having it taxed, and at first I thought he was crazy, but now I see what he was talking about. It is almost better to invest it back into the company than to have it taken away from you from the IRS.

[Richard Martin]

You need to consult with an investment expert at this point. There are legal ways to avoid paying taxes on portions of your income.

[GarPA]

Richard is right..talk to a good accountant. YOu may want to restructure the way your business is set up (sole p versus the other ways)

And if you need any equipment at all, buy it before 12/31 and you can expense ALL of it for accounting year '04..if you choose not to depreciate it

[paponte]

tiedeman, talk to your accountant. Make him work for his money. There are ways around everything, legal ways that is. :)

[GarPA]

amen to that...not only is he paid to do the vanilla accounting/tax work, but he should also be expected to provide you with an analysis of your situation and his recommendation on how to minimize your tax liability

we pay accountants more for what they KNOW, rather than what they DO

[YardPro]

uncle sam has set it up to encourage people to spend thier money, of set it up in specific investments.
it's trickle down economics.
it is designed to keep the money flowing in the economy, instead of sitting in accounts.

[Randy J]

Does anybody see anything wrong with this but myself? Maybe I noticed it more this year because I am going to fall under a higher tax bracket, but why is it when you work harder to have more money, the government taxes you more?

I can't understand why more people don't insist on a flat-tax. That or a national sales tax are the only fair ways to do it.

[rodfather]

Richard is right..talk to a good accountant. YOu may want to restructure the way your business is set up (sole p versus the other ways)

And if you need any equipment at all, buy it before 12/31 and you can expense ALL of it for accounting year '04..if you choose not to depreciate it

With all your money Gary, what does it matter:p. A good accountant is like your "silent partner" IMO.

[K.Carothers]

I can't understand why more people don't insist on a flat-tax. That or a national sales tax are the only fair ways to do it.

Bingo! Everyone pays with the flat tax and the IRS goes away(for the most part).

[tiedeman]

You need to consult with an investment expert at this point. There are legal ways to avoid paying taxes on portions of your income.

I think that I am going to. Or have a long talk with my accountant

[GarPA]

Rod...very funny you old fart (you really are now a geezer. Nice to see you made it thru your geriatric birthday celebration)...I was worried about you when we didnt see replies to your happy birthday thread that was started.

[eruuska]

Bingo! Everyone pays with the flat tax and the IRS goes away(for the most part).

My objection to a flat tax is that is a regressive tax, meaning that lower income people will pay a greater percentage of their income than higher income people. People on the lower end of the spectrum typically spend almost 100% of their income, so all their income would be subject to the flat tax, whereas the higher end saves and invests more and would therefore not pay as great a percentage.

I'd be okay with it IF there were exemptions for items such as food, medicine, shelter, and other necessities.

Eric

[mtdman]

uncle sam has set it up to encourage people to spend thier money, of set it up in specific investments.
it's trickle down economics.
it is designed to keep the money flowing in the economy, instead of sitting in accounts.

Bingo. That is right on. The government wants you to spend your $$ and keep things moving. When they lower taxes and eliminate tax breaks for spending in your business, they want to encourage savings. Right now, the government wants the economy to keep moving the way it has, and with inflation relatively low, that strategy should continue.

Taxes suck. I hate them.

:D

[K.Carothers]

My objection to a flat tax is that is a regressive tax, meaning that lower income people will pay a greater percentage of their income than higher income people. People on the lower end of the spectrum typically spend almost 100% of their income, so all their income would be subject to the flat tax, whereas the higher end saves and invests more and would therefore not pay as great a percentage.

I'd be okay with it IF there were exemptions for items such as food, medicine, shelter, and other necessities.

Eric

Under the flat tax the lower income bracket will receive a check for reimbursements. As far as who currently pays the lion share of taxes? Its the wealthy. Top 2% wage earners are responsible for 50% of revenues generated.