June 23, 2011 at 10:46 am #161926mark fosterParticipant
Tosh, The “rock and a hard place” of small business is not only credit, the other is a tax policy which brutally punishes you if you try to save money. As my accountant says every year: “head for zero”, meaning don’t have much money (“profit”) laying around to get taxed at 50-700%. Most small profitable companies (yes, they do still exist) spend like drunken sailors just before March 15 (corp tax day).
If there was a common sense way to save (something less than setting every other dollar on fire), I believe more small business would make it through hard times.
Heather, footnote to earlier post–at the time my bank “could not loan my a penny”, they were busy lending millions to larger local companies. Recently, I heard that they have had to foreclose on several of these and sell the debt for about 30 cents on the dollar.
Meanwhile I have paid all loans back on time, at full value. I am absolutely sure if I walked into my bank with this 25+ year record, they would still treat me the same.. Best advice is to get comfortable with the fact that in financial matters, life is unfair. Control what you can and let the rest go.June 23, 2011 at 12:31 pm #161925AnonymousInactive
Mark, you’re absolutely right. I learned the hard way last year. I was so happy to finally turn a miniscule profit, just to be taxed back into a “hand to mouth” situation.
I also agree with you when you say, “Control what you can and let the rest go”, but people are getting tired of busting their tails just to keep their heads above water. How long are the vast majority of Americans going to live with a “Fat Cat” foot on their throats? People are already starting to snap. It’s been a long time since the People were pissed off enough to take to the street, but its coming. When the people who have the power start to feel a little uncomfortable that’s when change happens.
Democrat, republican it doesn’t matter who’s in office. By the time they get to Washington they’re all on the same team and all they care about is staying in the game as long as they can.June 23, 2011 at 2:12 pm #161924Alan Ray, RLAParticipant
Each year on April 15, after the IRS has just wiped me out as they do every year, I have an Irish whiskey and
wonder how long it takes those spending addicted politician aholes to spend the money I had just busted my @$$ to earn over the past year….it was probably spent several years ago….
Craig, you are spot on about those politicians. If you were to look at their voting record without a d or r next to their name, you could not tell the difference. The two party system has been dead for decades. Anybody that puts faith in them will be verrrrrry disapointed.
Should I start a new discussion about what is a fair tax?
Don’t tempt me…….June 23, 2011 at 6:38 pm #161923Mike GParticipant
According to a link on another post ‘The growth ponzi scheme’ :
‘The quality employment opportunities available for the masses rely solely on the perpetuation of this unsustainable model, so we can’t even work our way out of this mess.’
No green economy = no green jobsJune 23, 2011 at 7:03 pm #161922
I know this sounds really dumb. But I am a newbie. When IS a business considered profitable? When you have enough to pay yourself? haha. I think we have very low standards. 😉 I think we have turned a profit from the beginning…but we lived on so little…I guess it depends on your standard of living. Of course we are still figuring out how to charge enough…but not scare clients away…and purchase equipment for our business. We have made the mistake of undercharging and then have to pay for things out of our own pocket. THAT is stressful in the middle of winter when you need a new CAD program or lap top. I guess if we are still surviving bonus for us? I am actually wondering how businesses survive that severely underbid survive…I imagine they don’t for long. We had enough write-offs last year that we were okay tax wise…but I imagine if you actually DO turn a healthy profit it is hard to minimize the tax hit. Do you use an SEPP? I think I read that if you think you are doing well that in Sept. you can ferret that cash away and won’t have it counted against you until you pull it out. I think if you are profitable it forces you to be more aggressive in growth…which could possibly put your business at more risk. We are very slow and steady here. Trying to minimize costly mistakes.
As far as taxes…like I mentioned before I think it is bizarre that we are a small business and therefore would pay the same taxes as a millionaire regardless of whether they fit the definition of “small” business. In Idaho I had to laugh…because you hit the highest state tax rate I think at $26,000 and it never increases…so if I am a billionaire I pay the same percentage. haha.
Wow…see here I am asking for business advice…better then asking where the jobs are! hha. Booyah!June 23, 2011 at 9:18 pm #161921Andrew Garulay, RLAParticipant
The amusing part of this thread is that it is mostly about looking for government to spend on “green jobs” and people are complaining about taxes at the same time. Be careful what you wish (or hope) for.June 23, 2011 at 9:31 pm #161920mark fosterParticipant
You will find that there are about 120 ways (an exaggeration) to go with “profit”….All lead to the same amount of tax, because the IRS is like Microsoft–“plug a hole here, and there, and here etc”.
I don’t know anything about SEPP… What I do know is I am too d&mn busy to afford an audit, so I do what my accountant tells me to, and I pay my taxes like a good citizen. That said, there are myriad windows of write-offs available.
My advice: get a good small business cpa, and ask him/her. Believe me, they obsess about the IRS like landscape architects do about fonts…..June 24, 2011 at 12:08 am #161919
haha…will do! We have a cpa I am not sure if he is business we will have to find out.June 24, 2011 at 12:10 am #161918
Very ironic isn’t it? haha. I actually don’t have a problem paying taxes as long as I feel that the wealthy’s needs aren’t continually placed over everyone else’s needs. That is unlikely to happen any time soon. 🙂 The idea of shared sacrifice is a joke.June 24, 2011 at 1:03 am #161917ALEX PParticipant
Politics are a waste of time. You are not happy because of something, yet if the president did what you wanted there would be an equal number of unhappy people. Its a lose lose situation. I am planning on moving into a hole so i dont have to deal with this anymore.
Bachmann 2012.June 24, 2011 at 1:35 am #161916Alan Ray, RLAParticipant
why should a billionaire pay anymore taxes than anyone else?
…after all he/she’s only one person with no more rights than anyone else….
A fair tax would be to divide the 1.3 trillion the irs collects in federal income taxes and divide that among the 350 million citizens…that would amount to $3,714. per person. Now that’s a fair tax.
Of course the 175 million (50%) citizens that pay ZERO in federal income tax would cry unfair, unfair, really?June 24, 2011 at 1:52 am #161915Tosh KParticipant
I get the feeling that’s why the credit freeze is tougher to handle for the US economy – by setting up a system that minimizes cash holdings (presumably a holdover from American dislike of aristocratic wealth build up), there is an increase need for credit when the accounts are in the red; frozen credit markets, prevent a free flow of capital across the “even” line – as I understand it corporations rely on short term paper money to cover payroll, etc and that’s why the likes of Toyota, GE, GM, Caterpillar, etc had to be floated US treasury funds in exchange for shortterm holdings of portions of those companies.
Is “bonus” money attempt to zero out corporate funds? I was under the impression that’s why companies gave them out…June 24, 2011 at 2:21 am #161914
meh. I don’t feel like debating this. You have your opinions I have mine.
I would question whether they don’t have more rights then you or I but that is another discussion.June 24, 2011 at 4:38 am #161913Anthony ParzialeParticipant
Wow Bob….for two guys who couldn’t agree on computers to save their lives, we are side by side on this. Well put!!
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