~~bof~~

lucyfox

I have to disagree with you in your post below about those making more money not "suffering" if Obama wins.  Unless I am not understanding it, those that make above a certain amount (250 is the number I keep hearing thrown around) will have their taxes increased.  I know several business owners personally that are terrified of that because while they gross more than that, their actual profit is waaaaaay less.  My BFF owns a resturant and she personally has not taken home a "paycheck" in over a year because business sucks.  Her store is taking in money (more than 250) but she is not "making" anything.  I hope that makes sense!  At any rate I know she is suffering and another tax increase would be devastating.

EMT

It's a little more complicated than that Lucy.  I'm not sure how their business is structered but it sounds like they are an S-corp or another "pass-through entity" in which all of the Company's income is taxable to the S/Hs or owners.  What that means is even though the money stayed in the business (i.e. the owners weren't paid the income); it is still taxable to them.  So even though she doesn't have the cash, she has too pay tax on the income.  She could be "rich" according to Obama's tax law but not actually taking that money out of the business.  See what I mean?

But, anyway, you know my opinion on this!  I see firsthand with the companies I deal with how increased taxes would impact both the shareholders (the rich bad people) and the blue collar employees (the poor good people) .  Increased costs to the employers ABSOLUTELY do get passed down to the employee's.  I can tell you it's going to cost me 4 X as much in deductible to have baby #2 then it did to have baby #1.  Why's that?  Because the insurance costs to my employer have gone up.  Don't understand how people can say that increased taxes on business will not impact the little guy.  It clearly will.  But I digress...

lucyfox

Yeah that tax stuff is confusing!  But I sort of understand what you mean. 
But I totally agree it all gets passed down...in this particular example it means raised prices, laying off employees and raised costs of ins...and you hit the nail on the head...that's all passed down to the "poor good people."   Business owners can't just eat it and suck up the increased costs...it will all get distributed down. 

EMT

what I meant to sort of clarify is that she IS getting taxed on her profit not her revenue (bottom line not top line).  But that doesn't mean she actually has that money at her disposal to use.  If she is not taking the money out of the corp in the form of distributions/salary but the company is making money (i.e. revenues exceed expenses); she has a cash outflow because of the taxes as a result of her store.  Increased taxes will increase that outflow and I would absolutely be fearful of that if I was in her situation. 

 Anyway, sorry to butt in...

lucyfox

Emt you know you can butt in anytime!  You are supa smart with the $$ stuff

Brideofranken

well, while I am unsure how MUCH of an increase she would see ( and that really makes a difference)- if she's actually making more than 250,000 annually, she isn't really the average american, and I can't imagine how much she'd have to pay in taxes to actually suffer? I don't see OBC putting her out of business and into the poor house in reality- in fact he wants to eliminate capital gains taxes on small businesses and give them tax credits to help provide their staff with healthcare.

I love to support small/ local business, so I wish her great luck!