greenslime, your debate tactics stink. Did you ever think that when everyone else disagrees with you, you might be the one who is wrong? I have dedicated a Pit thread to you here.
Um… yeah… I call BS on all of this. Taxes calculations START with gross income (NOT PROFIT). Wages, capital expenses and other expenses reduce the gross income to the taxable net income. Right now, I can avoid taxation on $250k of capital expenses THIS YEAR if I play it right under their special rules and still have additional ‘normal’ business deductions. Otherwise, I depreciate capital purchases over a front loaded period of typically only 5 years (unless you’ve got an idiot CPA).
To give an example, my neighbor grosses over $250k/yr. That translates into a brand new truck (w/a very small farm logo on it) + a new building + new racing stock every year. In the end, he pays taxes on about $30k of “income”. And, after 5 years, he can sell the truck and put the cash in his pocket w/no tax at all. AND, every dollar spent on his vehicles, toys, and 50% of his house is a deduction against his taxable income. Last year, he ran $450k down to a $30k income as well. The only reason he claims a $30k income is because it would be a major red flag to claim no income at all.
Another family business I know has millions of gross income that gets boiled down to $15k for the business and $32k/family member. They manage it through dividing up properties and some game through renting the properties and equipment to each other along with the standard new ‘company fleet’ each year and other allowable expenses.
Neither of these people give a flying fig about taxes when it comes to hiring staff. They hire staff when they are needed to get work done, then let them go when there is not work. Since no one has a personal income above $30k, what do they care about what is taxed against $250k or above. What they want to see gone is the minimum wage.