Reply #11: Punctuation aside.... [View All]

[kslib]

My parents started a business a few years ago (trucking for the farm industry). I helped with the books, and could NOT believe what they were paying in taxes!!! They have two employees (themselves) who get a total of $900 a month salary. They pay $358 in payroll taxes every month and an additional $600 quarterly for unemployment. Anyway, after deducting expenses (for fuel, repairs, salary, etc.) they made a whopping $4,000 this year. That was waaaayy too much (so sayeth the feds), so they have to pay $800 for fed tax, and a couple hundred for state tax. ARRRGGG! If they cheated and took out money from the business for personal expenses (calling it something else), then they wouldn't have to pay all this crap, but they won't do that, because they consider it unethical (go mom and dad!). They were told that they should go into debt and buy a new semi (which is really, really expensive) because they just finished paying off the current one; that way they could claim a loss, and not pay so much in taxes. What's wrong with the little business? Well, I think it's that if you're honest, you get screwed. (Maybe not, maybe they're just naive...)