DaveKamp
Well-known member
[url=https://classicgoldwings.com/forum/viewtopic.php?p=211863#p211863:2nn1bpwm said:dan filipi » Today, 7:10 am[/url]":2nn1bpwm]
Time to find an accountant that knows the rules if you’re paying 66% of your income into taxes. I don’t think I’ve ever paid more than 25%, usually much less.
I spent nine years of my life in the 37% tax bracket, which was before children, and renting an apartment... so it hurt... to make it more difficult, I had to pay for sales taxes on small items which weren't deductable, and capital gains taxes... so there was no avoiding it. I'm in a lower bracket now, and have children and a home, but having experience in being in a bleeding threshold, I have not forgotten.
There's always a standing discussion about progressive vs. regressive taxation, but the silent fact, is that complex tax laws disfavor small business in one simple fact: The cost of having a staff of experts on-hand to properly manage tax burdon is inevitably higher for small business and sole proprietorship, than a major company... because of economy-of-scale. The prevalent argument, is that a small business or sole proprietor can still have that advantage by hiring an accounting firm, but the stricken reality, is that a dedicated inside staff will ALWAYS be more successful, being dedicated-for-purpose.
The unfortunate reality, is that it doesn't matter how well one is able to conduct their business, maintain their customer base, or expand their market... if they lack ability to manage their tax burdon, they will fail.