Home Forums Hunting & Shooting Hunter's Campfire Cutting the Check Today...

Wacky tax year for me. I sold ~$20k in depreciated assets from one business to fire up another. That 20k had to be reported as income. However I had a ton to write off against it. And had a cruddy year otherwise. In the end I got a refund AND carried almost 10k over to this year to apply against 2012 machine shop earnings, so next year shouldn't be too bad either. However I'll probably get the smackdown in 2013.

Our business made a large profit in 2011. Since it is an S corp the profits flow through to the two owners, myself and my son.

We only took out enough to pay taxes and left the remainder in to grow the business. So, although we had very large taxable incomes, we don't have personal use of that money. I'm not complaining, just explaining.

Why have any deductions? That's why the flat-tax rate would be so much lower. You want to have six kids? Have at it! That doesn't mean your tax rate should be any lower than anyone else's. That was a personal decision.

I also advocate revamping capital gains and am for overall tax reform. This is where I depart from a lot of Republicans, but it's time to slay this beast called the tax code. The "don't crush the job creator" argument just isn't believable.

Why have any deductions? Are you serious? You mean a business could not deduct the cost of salaries, wages, materials, advertising, rent, depreciation, employee benefits, state and local taxes, etc.?

I'm all for revising the tax code but that would put business out of business.
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Actually if all the people working for the business pay taxes, why should a "business" pay any taxes?

Actually a business pays no taxes. The "taxes" the business pays are part of the cost of doing business. Those costs are passed along to the customers. If the business cannot pass those costs along the business soon goes out of business.

Many who have never owned a business do not understand this simple fact. That is why many are of the opinion that we should raise taxes on the large evil corporations. What they do not realize that by doing so they are but raising prices the evil corporation must charge to stay in business thus causing the little people to bitch and moan about "gouging".