Small Business Owners

[txmusicmom]

Here is a clip from a small business owner..........

Yes it's from Rush Limbaugh- but you need to listen to her- her name is Christine-- a real - live small business owner.


Small Business Owner (http://www.rushlimbaugh.com/home/daily/site_102408/content/01125112.guest.html)

[tammy1999]

OH MY GOSH!!!!! She is so right. Why make over $250,000 in your business when the government is going to take most of it anyway? How can you employ more employees if you are taxed more. And she is right about the liability consequences you have running a business.

The Dem's want everyone on the same playing field so that they can control ever aspect of our lives. But girl, this audio clip is just preaching to the choir. Liberals don't see that businesses in this country is where the money comes from to support the employees and where the majority of investment comes from. Taking more and more from them will only destroy companies and unemployment will only rise.

I'm glad you posted this and I hope some will listen to it.

[DirtyFeetDesigns (heb1976)]

Saw that yesterday. It is disturbing!

[daly]

EXACTLY! There are several 'small business' owners in my family...they ALL understand this!

It's very frustrating. The dems seemed so focused on arguing that the ultra wealthy are evil and not doing their fair share....it's as if they are clueless that the small businesses will be severely, adversely affected.

But I guess that (in their minds) my mom, who lives in a small 3 bedroom 1956 house, NEVER takes vacations and never spends frivolously just doesn't deserve what she has earned because there are still Americans who have not 'made it' like she has.

She didn't even 'make it' until after she turned 50!....so yeah, she's trying to save something for her retirement....SO SHE WON'T HAVE TO LIVE OFF THE GOVERNMENT IN HER OLD AGE!

[Chreamps]

On the same topic by CNN/Money (http://money.cnn.com/2008/10/15/smallbusiness/small_biz_taxes_factcheck.smb/index.htm):

...What gets taxed?
Third, even if you're one of the rare business owners making enough money to be affected by Obama's proposed tax increases, you still won't see a big hike in your tax bill.
McCain's claim that Obama "will increase taxes on 50% of small business revenue" - the line he used in the second presidential debate - is incorrect because of how income is taxed.
If a business owner falls into the top bracket, that doesn't mean that all of his or her income is taxed at the highest level.
For example: If a small-business owner makes $210,000 in taxable income, he edges into the 33% bracket, one of the two top tax rates that Obama would like to raise.
But he would pay the higher tax only on the amount that exceeds the cutoff - in 2007, the two top tax rates applied to single filers with income of $160,850 or more and joint filers with income of at least $195,850. As a single filer, this business owner would see his federal taxes increase $1,475 under Obama's plan, which calls for raising the 33% tax rate to 36%.
"While Obama does favor raising the top two rates, the quote is not true because not all the small business income of those in the top two rates is taxed at the 33% and 35% rates," said Gerald Prante, a senior economist at the nonpartisan Tax Foundation.

The bottom line: McCain's claim only works by using an overly broad definition of what counts as a "small business" - and even with that definition, fewer than 2% of business owners would be hit by Obama's proposed rate increase. For those who are affected, the increase would be levied only on a part of their earnings, not all of them.

But, since it's from CNN, you don't have to believe it or the "experts".

[Glueless Media]

CALLER: But the employees need to be careful what they wish for, because what's going to happen is business owners know what their limits are. We know exactly where we need to be to not exceed $250,000 a year. We're not going to continue to hire people if I'm going to give my earnings to Barack Obama.

See another thing they are not factoring small business owners are smart enough to know not to go over that 250 mark, which ever way they can to not allow the Gov to take their hard earned money. I mean my hubby we know where his overtime is great for us and where it stops, throws him into another tax bracket and then he worked for nothing. So when he reaches that point we choose no OT. Stay home and spend time with family and not line the tax coffers,right?

[tammy1999]

CALLER: But the employees need to be careful what they wish for, because what's going to happen is business owners know what their limits are. We know exactly where we need to be to not exceed $250,000 a year. We're not going to continue to hire people if I'm going to give my earnings to Barack Obama.

See another thing they are not factoring small business owners are smart enough to know not to go over that 250 mark, which ever way they can to not allow the Gov to take their hard earned money. I mean my hubby we know where his overtime is great for us and where it stops, throws him into another tax bracket and then he worked for nothing. So when he reaches that point we choose no OT. Stay home and spend time with family and not line the tax coffers,right?


Thats exactly what I said in my post. Why make the effort?

[Glueless Media]

Thats exactly what I said in my post. Why make the effort?

Yes you did...HEHE I hadnt got that far yet..lol:lol

[Chreamps]

...The Truth About Obama's Small Business Tax Plan (http://womeninbusiness.about.com/b/2008/10/03/will-obamas-tax-plan-will-cripple-small-business-owners.htm)

The overwhelming majority of small-business owners would see no increase, and in fact, sole proprietors filing on personal tax returns might even seen a decrease in taxes; and
Obama's tax plan proposes to raise rates on couples making more than $250,000 or singles earning more than $200,000 per year. Most small business owners do not earn enough to be affected by any tax increases. According to the Urban-Brookings Tax Policy Center, "several hundred thousand small business owners, at most, would have incomes high enough to be affected by the higher rates on income, capital gains and dividends that Obama proposes." That is a far cry from 23 million small business owners....


From About.com: Women in Business

[txmusicmom]

This information came from a small business owner- not McCain-
She knows her business. She knows what they can/cannot afford.

[tammy1999]

On the same topic by CNN/Money (http://money.cnn.com/2008/10/15/smallbusiness/small_biz_taxes_factcheck.smb/index.htm):



But, since it's from CNN, you don't have to believe it or the "experts".

I don't believe too many so called "experts" anymore. I believe what my Income Tax form says every year and what other business owners are experiencing. They are the "experts" in my book.

[Glueless Media]

From About.com: Women in Business


Most small business owners do not earn enough to be affected by any tax increases. BUT BUT the ones who do it is a BIG reality:) Listening to the million women conference call today( real women with real voices, not statistics) I can tell you that more small businesses will be affected than the media is letting on.

[txmusicmom]

I can tell you that more small businesses will be affected than the media is letting on.

Exactly- this lady has 15 employees-- that's not a very big small business........

My AC guy- has 2 employees............

Real people, real business-- not rich by any means- but out there working and creating jobs!

They are taking the risk-- right now AC/heat don't have much work.......but he plans for that........it's his business.

[tammy1999]

EXACTLY! There are several 'small business' owners in my family...they ALL understand this!

It's very frustrating. The dems seemed so focused on arguing that the ultra wealthy are evil and not doing their fair share....it's as if they are clueless that the small businesses will be severely, adversely affected.

But I guess that (in their minds) my mom, who lives in a small 3 bedroom 1956 house, NEVER takes vacations and never spends frivolously just doesn't deserve what she has earned because there are still Americans who have not 'made it' like she has.

She didn't even 'make it' until after she turned 50!....so yeah, she's trying to save something for her retirement....SO SHE WON'T HAVE TO LIVE OFF THE GOVERNMENT IN HER OLD AGE!

I love hearing stories of people starting a business and succeeding. And God Bless her for starting later in life and give her a hug from me. I started my business at about 47 and its taken me about 4 years to finally show a decent profit. I even bought myself a bicycle with some of it. :yahoo

Yea, you may not make tons of money, but when you look at whats ahead and that itty bitty Social Security check that will be coming your way in a few years. Ya gotta do something to save some money for retirement.

[Chreamps]

...other business owners are experiencing..

I totally respect that, all of you have the right to believe what you want, I don't argue the point. Not every small business owner feels that way and that is their right, too.

As a single mother raising four children solo and a small business owner, I am particularly concerned with McCain's helping married couples with children, but not single parents (if you are married you get a $7,000 per child exemption immediately, single parents would get $4,000 per child but not until 2010). And since most women own sole proprietorships (as do I), we file our business taxes with our personal tax returns, this does affect us most. I am not sure why those with higher, dual household incomes should benefit more than those with lower incomes and more financial responsibility. But I am not a tax expert, nor claim to be one.

This is the next page on the About.com: Women in Business (http://womeninbusiness.about.com/b/2008/10/04/would-john-mccains-tax-plan-help-the-middle-class.htm)

BUT the ones who do it is a BIG reality:) Listening to the million women conference call today( real women with real voices, not statistics) I can tell you that more small businesses will be affected than the media is letting on.

They will vote who they think will be better for them, then.

[Glueless Media]

They will vote who they think will be better for them, then. __________________

That's all any of us can do.:)

[txmusicmom]

[quote=tammy1999;1551433I even bought myself a bicycle with some of it. :yahoo/quote]

Living large are you???? :lol :lol ;)

Good for you! What type of business did you start! ( I'm just about your age)

Donna

[txmusicmom]

If the Bush Tax Credits are allowed to expire-
-the child tax credit will go away.........married or single-- that's a huge help
-the marriage penalty tax will be reimplemented......

For OUR family..........I'd like them to stay. Helps me pay for college--- 1 in and 1 going in next fall.

[HLWalter725]

Exactly- this lady has 15 employees-- that's not a very big small business........

My AC guy- has 2 employees............

Real people, real business-- not rich by any means- but out there working and creating jobs!

They are taking the risk-- right now AC/heat don't have much work.......but he plans for that........it's his business.

I understand what you are getting at, but as it stands now, business that have less than 50 employees are exempt from a great deal of requirements that cost them money to have employees. They are not required to offer health care, they are not required to comply with FMLA leave, etc. These are all tax deductible programs. If they are earning over $250,000 with two employees and not paying health care or FMLA, etc. they can add these things as deductions and it will wash outl. Heck if they aren't offering those kinds of benefits and are earning that kind of profit (after all expenses and reinvestment into the organization -- all pre-tax) then IMO they SHOULD be taxed more and participating in the system. If their employees aren't getting work health insurance, surely they will be pulling from the system eventually.

[Microferk ~ Miki Ferkul]

If the Bush Tax Credits are allowed to expire-
-the child tax credit will go away.........married or single-- that's a huge help
-the marriage penalty tax will be reimplemented......

For OUR family..........I'd like them to stay. Helps me pay for college--- 1 in and 1 going in next fall.

Have you seen Obama's plan for higher education costs? ;)


Create the American Opportunity Tax Credit: Obama and Biden will make college affordable for all Americans by creating a new American Opportunity Tax Credit. This universal and fully refundable credit will ensure that the first $4,000 of a college education is completely free for most Americans, and will cover two-thirds the cost of tuition at the average public college or university and make community college tuition completely free for most students. Recipients of the credit will be required to conduct 100 hours of community service.
Simplify the Application Process for Financial Aid: Obama and Biden will streamline the financial aid process by eliminating the current federal financial aid application and enabling families to apply simply by checking a box on their tax form, authorizing their tax information to be used, and eliminating the need for a separate application.

[HLWalter725]

Have you seen Obama's plan for higher education costs? ;)

Create the American Opportunity Tax Credit: Obama and Biden will make college affordable for all Americans by creating a new American Opportunity Tax Credit. This universal and fully refundable credit will ensure that the first $4,000 of a college education is completely free for most Americans, and will cover two-thirds the cost of tuition at the average public college or university and make community college tuition completely free for most students. Recipients of the credit will be required to conduct 100 hours of community service.
Simplify the Application Process for Financial Aid: Obama and Biden will streamline the financial aid process by eliminating the current federal financial aid application and enabling families to apply simply by checking a box on their tax form, authorizing their tax information to be used, and eliminating the need for a separate application.

I saw this Miki, but I wasn't following it though. Maybe you can explain it to me as I'm in the generation that is over a decade out of college myself, but more than a decade away from sending my kids to college. Is this saying you get a refund for the first $4,000 and THAT is equal to 3/4 the cost of the entire education? or is this a yearly credit? You get $4,000 per year until 3/4 of the cost of the educaiton is paid? I'm unclear.... but even here at Akron, that $4,000 isn't going to go very far. Can you clarify?

[Scorpiosue1102]

What I am understanding is that first $4k will not be taxed. I can't find it, but I believe that college students could receive $4k every year with community service. I'm going to e-mail my friend who works for the Obama campaign. It'll be quicker than e-mailing the campaign so close to the election. I probably wouldn't find anything out until tonight.

[Microferk ~ Miki Ferkul]

I saw this Miki, but I wasn't following it though. Maybe you can explain it to me as I'm in the generation that is over a decade out of college myself, but more than a decade away from sending my kids to college. Is this saying you get a refund for the first $4,000 and THAT is equal to 3/4 the cost of the entire education? or is this a yearly credit? You get $4,000 per year until 3/4 of the cost of the educaiton is paid? I'm unclear.... but even here at Akron, that $4,000 isn't going to go very far. Can you clarify?

I can't say for sure as I am trying (as id Chris) to get the details. I am thinking it's a 4000 credit to begin with and then some kind of subsidy that is supposed to account for the 2/3rds. But no- I cannot say for sure!

[txmusicmom]

Heck if they aren't offering those kinds of benefits and are earning that kind of profit (after all expenses and reinvestment into the organization -- all pre-tax) then IMO they SHOULD be taxed more and participating in the system. If their employees aren't getting work health insurance, surely they will be pulling from the system eventually.


Oh I can assure you , he's not!! :lol They would be nice......

He just makes more than he did working as our local college doing AC.

[Haley64]

EXACTLY! There are several 'small business' owners in my family...they ALL understand this!

It's very frustrating. The dems seemed so focused on arguing that the ultra wealthy are evil and not doing their fair share....it's as if they are clueless that the small businesses will be severely, adversely affected.

But I guess that (in their minds) my mom, who lives in a small 3 bedroom 1956 house, NEVER takes vacations and never spends frivolously just doesn't deserve what she has earned because there are still Americans who have not 'made it' like she has.

She didn't even 'make it' until after she turned 50!....so yeah, she's trying to save something for her retirement....SO SHE WON'T HAVE TO LIVE OFF THE GOVERNMENT IN HER OLD AGE!

Your mother started making over $250,000 a year at the age of 50? What the heck does she do? I want to get in on that retirement plan!! :yahoo

CALLER: But the employees need to be careful what they wish for, because what's going to happen is business owners know what their limits are. We know exactly where we need to be to not exceed $250,000 a year. We're not going to continue to hire people if I'm going to give my earnings to Barack Obama.

See another thing they are not factoring small business owners are smart enough to know not to go over that 250 mark

How do you feel about the big companies who do this daily/monthly/year after year hiding their company income from the government tax plan?

I don't feel that it is a case of "We know when to stop making money or income" it is rather they get smarter at hiding it like greedy little gluttons (the love of money is the root to evil) who don't pay what they are already required to, but find so many tax breaks and loop holes already that they are NOT paying what they should be.

As a person who knows many small business owners and how they work and like another poster said somewhere here before...if you only knew what companies can write off it would blow you out of the water a few include 4-wheelers and boats, drinks, suppers and vacations with friends and say it is a business expense! This goes on all the time!

[Glueless Media]

Your mother started making over $250,000 a year at the age of 50? What the heck does she do? I want to get in on that retirement plan!! :yahoo



How do you feel about the big companies who do this daily/monthly/year after year hiding their company income from the government tax plan?

I don't feel that it is a case of "We know when to stop making money or income" it is rather they get smarter at hiding it like greedy little gluttons (the love of money is the root to evil) who don't pay what they are already required to, but find so many tax breaks and loop holes already that they are NOT paying what they should be.

As a person who knows many small business owners and how they work and like another poster said somewhere here before...if you only knew what companies can write off it would blow you out of the water a few include 4-wheelers and boats, drinks, suppers and vacations with friends and say it is a business expense! This goes on all the time!

Personally It's a fine line. I guess I am talking about middle America small business owners who FINALLY got a break not about BIG Corporations or Millionaires in Hollywood. Then when you say that you get into another can of worms.:shrugI agree those types of things- loop holes are not right.

[txmusicmom]

if you only knew what companies can write off it would blow you out of the water a few include 4-wheelers and boats, drinks, suppers and vacations with friends and say it is a business expense! This goes on all the time!

OH MY!!!! My friend doesn't know about this.............all he gets is a truck to haul his equipment around.

Seriously-- that is wrong........but not all business owners do that-

I know when my dh and I have done some small business....photography.......sales...... I was totally paranoid and didn't want to get audited..............Of course we made so little.....( they were on the side jobs)

Instead of punishing all of them- punish the abusers...........

[Haley64]

Personally It's a fine line. I guess I am talking about middle America small business owners who FINALLY got a break not about BIG Corporations or Millionaires in Hollywood. Then when you say that you get into another can of worms.:shrugI agree those types of things- loop holes are not right.


LOL I guess I should have said the people that I know who are doing this ARE the middle America small business owners (3-15 employees), along with the bigger businesses!

[Haley64]

OH MY!!!! My friend doesn't know about this.............all he gets is a truck to haul his equipment around.

Seriously-- that is wrong........but not all business owners do that-

I know when my dh and I have done some small business....photography.......sales...... I was totally paranoid and didn't want to get audited..............Of course we made so little.....( they were on the side jobs)

Instead of punishing all of them- punish the abusers...........

I don't want to get audited either so I don't fudge! :)

However once you get into trucks, trailers, equipment, tires, tools, gas/diesel, parts and repairs it is VERY easy to write those off because things wear out so there never is a physical trail of how the money was redirected.
I bet if you asked your friend to be truly honest with you about what he does deduct example: gas somehow gets pumped into a personal use vehicle to be used as a deduction for truck work gas...ask him if he has ever just done this once! :)

[tammy1999]

Makes me wonder too if the fudging won't get worse if the taxes go up?

I don't mess with the IRS. I don't want them knocking at my back door. My garage has one solid wall of boxes we have to save every year.

[Gina.Maria]

The education credit would basically pay families $4000 as a reimbursement of college tuition expenses.

From the Obama-Biden Website:
Create the American Opportunity Tax Credit: Obama and Biden will make college affordable for all Americans by creating a new American Opportunity Tax Credit. This universal and fully refundable credit will ensure that the first $4,000 of a college education is completely free for most Americans, and will cover two-thirds the cost of tuition at the average public college or university and make community college tuition completely free for most students. Recipients of the credit will be required to conduct 100 hours of community service.

The 2/3 claim refers to the idea that the average cost of tuition at our nation's public universities runs around $6000. I would imagine that the credit would require tuition payment documentation in the event of an audit and I'm not sure how the community service aspect will be handled.

[txmusicmom]

Many of my students are already getting financial aid -- enough to cover tuition, books and a little extra - since our community college is pretty inexpensive-

My son is getting a variety of scholarship/aid- one is called an equalization- basically it takes your income and you get a reduction in tuition if your income is less than the *average * income....it's a private university- he got some grant money from FAFSA and then a huge amount for a transfer scholarship based on his academics.

Our choice for him to live at home is a huge savings- $9000 a year. ( Of course we do have the expense of gas for commuting and feeding him....:eek)

So already there is opportunity for students- MUCh more than when I went to college- I was valedictorian and got $700 a year scholarship and one time $300. Wahoo......:blush

The FAFSA ( while being a royal pain ) is the first step toward financial aid. Most places around here you have to fill it out first. Plus many colleges have you fill out ONE scholarship application-- and it covers anything/everything their institution covers! REALLY NICE!

[Gina.Maria]

I can't imagine why you'd think a Free Application for Federal Student Aid (FAFSA) is difficult. It's three short pages, tells you exctly what line of your Tax Return to look at for the answers and can be completed in about 10 minutes online.

Especially when you consider the return on that short investment of time - For lower-income families, Pell grant and or FSEOG funds, subsidized student loans, Federal Work Study all the way up to Cost of Education.

[tammy1999]

I can't imagine why you'd think a Free Application for Federal Student Aid (FAFSA) is difficult. It's three short pages, tells you exctly what line of your Tax Return to look at for the answers and can be completed in about 10 minutes online.

Especially when you consider the return on that short investment of time - For lower-income families, Pell grant and or FSEOG funds, subsidized student loans, Federal Work Study all the way up to Cost of Education.

Can't you do that all online now?

[Tiffikat]

Yep it's online now. I've done it not online though and it was a PITA. It's harder if you do it before you do your taxes, but they have made the process a lot easier over the years.

[kjbstevens]

Yep it's online now. I've done it not online though and it was a PITA. It's harder if you do it before you do your taxes, but they have made the process a lot easier over the years.
Yeah they want it online now but you still have to mail in all of your tax forms to the school.

[txmusicmom]

Yes it's online........I filled it out.........I saved last years as a pdf......so I could refer to it.....I don't remember what was frustrating......but alas- I did it.

[Gina.Maria]

Yeah they want it online now but you still have to mail in all of your tax forms to the school.

Only if you're selected for verification, though some schools perform 100% verification. It's not common, though, with public schools.

[Theresa Hernandez]

I actually heard her call live when it was on the radio on Friday. But again, it's only on the net profit, not gross. So business owners can actually give their employees bonuses if they want to avoid paying the government a few extra tax dollars. But if they reinvest their profits back into the business, that is a business expense and therefore reduces the taxable income. Of course Rush never asked her questions that would lead to that conclusion because he wanted her to make only HIS point of view.

That is one of the biggest problems with radio talk shows that are slanted left or right. They only present part of the issue; the part they really want to push.

[txmusicmom]

I actually heard her call live when it was on the radio on Friday. But again, it's only on the net profit, not gross. So business owners can actually give their employees bonuses if they want to avoid paying the government a few extra tax dollars. But if they reinvest their profits back into the business, that is a business expense and therefore reduces the taxable income. Of course Rush never asked her questions that would lead to that conclusion because he wanted her to make only HIS point of view.

That is one of the biggest problems with radio talk shows that are slanted left or right. They only present part of the issue; the part they really want to push.

I heard her interview-- she actually was free to say anything she wanted..
She said they did give bonuses to their employees--

I've heard on many talk shows- people calling in with a different view point --
She called in agreeing with his point of view.......but she was free to give her personal story- which she did.

:shrug

[Theresa Hernandez]

I understand, but Rush knows the tax laws. He never called her on her obvious omission of some basic facts.