Quote:
Originally Posted by 'BusNative
I assume (and hope) that this will be assimilated into another thread eventually, but I thought this was a very important column given many of the recent discussions re: small businesses and taxes out here.
I thought something was off when Joe the Plumber was going to purchase his business for $250k, yet somehow were were supposed to believe that he was going to jump a tax bracket. BOTH campaigns missed the facts here:
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And so did the article.
Having made a living doing taxes for a few years I can tell you it completely omits the owners of Subchapter S corporations, or "S Corps" for short. These are often used be small businesses and sole proprietors to afford them some corporate protections while being taxed at personal rates. The income from the "S Corp" is passed down to the individuals via Schedule K, which is entirely different than Schedule C.
The "bottom line" is that increasing personal income taxes on "the rich" will impact these filers as well. And each S Corp can have several Schedule K recipients, each taxed at the personal level. These filers must be added to the Schedule C filers in the article to find the true total of taxpayers potentially impacted by Obama's tax plan.