Quote:On April 13th, 2016, I wrote the federal government a check for $170,000 for the overage on my taxes.
Quote:This check represented a portion of my total tax bill for the year, approximately $400,000. That amount did not include state tax, local tax, property tax, import taxes, sales tax, excise taxes, and other extraneous expenses.
I am the founder of several companies, and they employ more than twenty people in total. Together, their revenues total more than $10 million per year. When my total tax bill is calculated, it represented more than half of my total taxable income (after subtracting obvious business expenses of office rent, equipment, etc).
Quote:Once in the top income bracket, 39.6% of every dollar goes to the federal government. What most people overlook, though, is the extremely expensive payroll tax. The total payroll tax rate is an additional 15.3% on your first $118,500, plus a portion of each employee’s salary. For some incomes, the additional of the payroll tax brings the total tax burden to well over 40%, even if they are not in the top tax bracket. Add in state, local, import and export, as well as all other taxes, and you have a tax bill that can run well over 60 percent.
Quote:The surprise this year, though, was the inventory expense that hurt our cash flows.
At the end of 2015, we placed a major purchase order for inventory of our products. If you sell physical products in your business, the government does not allow you to write it off until it is sold, because it considers that purchase to be an asset, rather than an expense.
Quote:In other words, the business was fully invested in inventory and people, and then we had to pay tax on money that was not yet earned.
Quote:When the government promises to add jobs to the economy, build a new program, or “do” anything, it has to take from citizens who would normally invest into the economy. In my case, it has literally prevented three jobs from being created, and will celebrate whatever it claims to accomplish with that money instead.
Quote:For one thing, the rhetoric which assumes that “the rich don’t pay taxes” is oversold and needs to stop.
Quote:I could have hired three people. Now I cannot. Meanwhile, 45% of the country pays no taxes at all, while telling me that I should pay more. I paid $170,000 in taxes that should have been avoided. What is your “fair share?”
I have a friend that made $180k last year. He paid $45k in federal taxes and it would have been more if he hadn't just bought a house. When do we say enough is enough? When do we start requiring people to get off their asses and pull their mouths from the nipple of free shit?
Bernie's entire campaign has been built on promises he can no possibly keep. If you increased the tax on the top 5% of earners to 100% you could only pay for half of what he has promised. His promises, if kept, would destroy this country.
I am speaking of the life of a man who knows that the world is not given by his fathers, but borrowed from his children; who has undertaken to cherish it and do it no damage, not because he is duty-bound, but because he loves the world and loves his children… - Wendell Berry, 1971