Tax Crap

Discussion in 'Lawn Mowing' started by Charles, Apr 4, 2001.

  1. Charles

    Charles Moderator Staff Member
    Posts: 7,952

    I have said all along i am for paying taxes on your income and obey laws. But I have also said that taxes are way too high. I got my income taxes bill this year and it is wayyyy too F'ing much. Self employed people are getting screwed and something need to be done about it. There is almost no way for a self employee person to make a decent living in this country. Unless you buy alot of equipment every year and put your money in a ROTH you are taken to the cleaners by our tax system.
    Oh sure some out there dont pay taxes and risk fines and jail time. You dont put any social security in you dont get much if any out.
    What do you have to do buy equipment you dont need? Buy equipment you cant afford? Hey i could have bought alot of equipment with the taxes I MFing owe.
    I dont think W plan is the right plan and it only cuts taxes 5 billion the first five years it is in place and I odnt know what it does for the self employed.
    I wrote off every thing that was legal to write off and still owe a bundle. What if i didnt have those write offs? Well dont even want to think of that.
    NOt trying to start a dem or rep thing going. All these pols are screwing us left and right.
    The bottome line is if you run legal your profit is eat up by insurance and taxes and other expenses.
    If you run illegal you have many other risk...
     
  2. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    Why do you think that, as a self-employed person, you would pay more than someone working in the spice factory for the same amount?

    I know the answer, and that is, witholding. If every flyspeck picker at the spice factory had to write a quarterly check to the IRS as we do, rather than be dumbed down by the "net pay" b-spit there would be a tax revolt and upheaval in this country the likes of you have never seen since the Civil War.
     
  3. skyphoto

    skyphoto LawnSite Member
    Posts: 221

    Those write offs are a double edged sword because I always have alot of write offs but when I go to the bank they want my bottom line.....which is really LOW cause I keep track of everything I can write off Sooooo if I know I want to go to the Bank I have to plan waaaaaay in advance to take less deductions and pay more taxes the previous year. To a Bank it is better to pay alot of taxes than to put money in your business?!@?#?@#!@#?!@#?!

    Oh well!

    Peace!
     
  4. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    Lose lose situation!
     
  5. John from OH

    John from OH LawnSite Member
    Posts: 144

    We're all in the same boat paying taxes. I learned along time ago that with a good financial plan the tax burden can be eased. I don't like paying taxes, but I now always have the money to cover them. You need to really find the actual cost of doing business, then charge accordingly. If you are covering your cost, paying yourself a living wage, and have reasonable profit, our tax system becomes much friendlier to the self-employed. The tax system doesn't always seem fair, but being self-employed has its advantages. I still grumble when I sign the tax payments checks. (LOL).


    Skyphoto, you need to spend some time educating your banker on how a green industry business is run. Take the time to go over your tax return with the banker, point out the write offs for depreciation and Section 179 expenses. I use those expenses to eat as much profit as possible. My accountant is also involved in planning how much of these expenses to use now and what to hold for next year. We base this decision on current profit and my best guess/ plan for next year with estimated sales, equipment purchases, and projected profit/loss. We started this about 7 years ago and dealing with my banker is a breeze. Meet with the banker occassionally and keep them up to date. Share good financial news with them, but don't hide bad news either. They can be a good source of insite and
    can refer you to other business mentors. Also educate the banker on the seasonal cash flow of a green industry business.
     
  6. Finecut

    Finecut LawnSite Member
    from IL
    Posts: 177

    I feel grateful that I get to pay a large tax bill...it's a good indication I have made a lot of money. And remember it's not how much you make that counts, it's how much you hang on to! I must agree I don't like supporting the will not's...and by that I mean those who will not attempt to help themselves! The unfortunate thing is if we gave all our money to the government they would spend it all and still want more. If I ran my business like that I would be out of business in short order!
     

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