Taxes went up across the board this morning at 12:00 a.m.
The Republicans are now voting to cut taxes.
Taxes went up across the board this morning at 12:00 a.m.
The Republicans are now voting to cut taxes.
The GOP is now voting for the Obama Tax Cuts. Do you want to give them a medal for that?
The 2% cut in SS tax was let lapse, so it will go back up to where it was for everyone. Taxes on dividends and capital gains go to 20% from 15% for those making 400,000 or over. Other provisions pro and con on limits and caps and such.
Some key achievements, some concessions. Hardly a catastrophe.
The next leg, on debt limit and spending cuts will tell the tale.
Umm, not according to this guy:
This will destroy S-Corp (small business) tax-return-filers.
Note that I didn’t say “decimate”, because that implies a mere destruction of 10%.
Further note: Tax rates (being played with here) and tax receipts (pretended to grow here, but that’s quite unlikely) have absolutely nothing to do with government spending, the debt, and the fiscal cliff.
Punishing work is absolutely crazy, negative in every possible way for society and prosperity. The income tax itself is batsh*t stupid.
Mikla Tue, 01/01/2013 - 10:40 | 3111958mikla
Because S-corp includes the business profit/loss on the personal return (there is no filing for the business separately), a small-business owner receiving $50K in “income” (salary+ bonuses) would appear to *also* have received all of the profits from the business, even though the small-business-owner did not actually receive that money to buy yachts (that money is re-invested into the business, and not actually received as “income” to the owner; but it is considered income, so it is taxed).
This is especially important/painful to any small-business that needs to build a “capital-reserve”, since any “lines-of-credit” from banking institutions to small businesses are no longer reliable (cannot be gotten, nor trusted, because they are commonly being “withdrawn” by the bank without notice and for no reason).
Note that C-corp Google and Apple don’t have this problem — they can move the business income to ensure that it is not “received” (is not counted as “dividend” nor “profit”), and thus not “taxed”.
Yes, many small businesses might be able to move from S-corp to C-corp, with restrictions, and expense (different and more costly rules now apply), but not retro-actively.
This is probably part of the intended effect. The current government *hates* small business, because only “large” businesses hire lobbyists. Large businesses are easier control, and to shake-down for cash. (I’m not joking here.)