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Why do self employment pay more taxes than everyone else?

Discussion in 'Business Operations' started by lasher66, Dec 11, 2002.

  1. lasher66

    lasher66 LawnSite Senior Member
    Posts: 395

    I just think it is a crock that we have to pay more taxes than the average tax payer. At least thats what it looks like to me. If I am not mistaken, arent we paying an additional 15.3% of our profit to the irs more than every other taxpayer? Just had to vent because I realized I came up about $2000 short for taxes .

  2. Tax is the same for self employed or job for wages.
    Only thing on wage job is paycheck shows 1/2 withheld from paycheck, other half is paid in by employer.
  3. bob's right also you get a half of that tax as a deduction
  4. Floridalandcare

    Floridalandcare LawnSite Senior Member
    from Tampa
    Posts: 314

    My 2 cents is find yourself a good CPA youd be amazed at the deductions that are out there for our benefit>
  5. Darb

    Darb LawnSite Member
    Posts: 182

    It amazes me the number of people on this site that own their own business that vote for people that RAISE the taxes.
  6. Lanelle

    Lanelle LawnSite Bronze Member
    Posts: 1,361

    Remember that Social Security and Medicare (FICA) are politically sacred cows. No politician is going to reduce old-age benefits unless under duress. Self-employment tax is FICA. Demographics are working against the social security $$ pool now so don't expect a reduction there. The income tax rate is an entirely different issue.
  7. Absolutely true lanelle

    We gonna kick granny smith who only draws social sercurity out in the street.This may be hard to beleive but there is a whole lot of old people thats all they got comeing in.
    Thats one tax i aint gonna complain to much about. I think my old man deserves it he fought war world 2 for me so i dont mind paying a tax if need be for him.
  8. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    i thought bush was lowering taxes:confused:

    the way i see it the US has burdens now it didn't have a couple of years ago. security is a concern, and to keep your militay going costs $$$. thats got to get paid. i would gladly pay more in taxes to my government if our military was getting its fair share...
  9. devildog

    devildog LawnSite Senior Member
    from sc
    Posts: 270

    Incorporate and take the tax benefits. with regards... devildog
  10. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    I would take issue with Devildogs statement.
    Most accountants will tell you that Sole Props filing cash basis returns have a distinct advantage tax wise... liability issues aside.

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