I think my parents owe $5,000 in taxes this year. Mom's an RN and my dad's a maintenance supervisor at at plant.
NJ does suck ass when it comes to the economy. I always hear about it on 101.5 as well.
NJ does suck ass when it comes to the economy. I always hear about it on 101.5 as well.
lol, I wonder if it's even POSSIBLE to screw up enough on your taxes to pay $16k when you make $20k
HardcoreRobot
Lifer
- Nov 7, 2000
- 16,403
- 3
- 81
Originally posted by: JustAnAverageGuy
I ended up owing Uncle Sam around $750
I'm going to owe more than I'd like, because they're taxing my scholarships:|
I swear the government thinks I should live in the street or something. You'd think the standard deduction would vary based on the cost of living, but no...
Wow, what a bunch of ignorance in this thread.
How many of you know that when you go self employed you automatically get hit with an additional 15.3% in taxes called, get this... "Self Employment Tax"? Before deductions, my base tax rate is 40.3%. How many of you pay that much? At that rate, 16K is 40% of $40,000. So, if they claimed no deductions, that's what their gross income would have been if they had to pay 16K in taxes. I started my own business two years ago. I'm not even close to being rich, but I'm doing better each year. I go to an accountant for help with my taxes. After claiming every deduction we both could think of, I still paid about 25% of my gross income in taxes.
Before I started my own business, my tax bracket was about 25% BEFORE deductions. My first year in business I made about the same and was in the same bracket (lower middle class) but had that extra 15.3 Self Employment tax, thus putting me at 40.3%. Once you cross over the 100k a year gross income, you get to pay even more taxes as you move into a higher bracket.
The Federal Gov't spreads a bunch of BS about 'helping the self-employed and small businesses'. It's just the opposite. As soon as you start a business, you get hit with MORE taxes. It truly is the small business owners that shoulder the biggest tax burdens in this country. That's why self-employed contractors have hourly rates that others think are 'outrageous'. When you consider that their base tax rate is roughly 40.3%, and they have business expenses that are often NOT 100% deductable, they're not making all that much money.
How many of you know that when you go self employed you automatically get hit with an additional 15.3% in taxes called, get this... "Self Employment Tax"? Before deductions, my base tax rate is 40.3%. How many of you pay that much? At that rate, 16K is 40% of $40,000. So, if they claimed no deductions, that's what their gross income would have been if they had to pay 16K in taxes. I started my own business two years ago. I'm not even close to being rich, but I'm doing better each year. I go to an accountant for help with my taxes. After claiming every deduction we both could think of, I still paid about 25% of my gross income in taxes.
Before I started my own business, my tax bracket was about 25% BEFORE deductions. My first year in business I made about the same and was in the same bracket (lower middle class) but had that extra 15.3 Self Employment tax, thus putting me at 40.3%. Once you cross over the 100k a year gross income, you get to pay even more taxes as you move into a higher bracket.
The Federal Gov't spreads a bunch of BS about 'helping the self-employed and small businesses'. It's just the opposite. As soon as you start a business, you get hit with MORE taxes. It truly is the small business owners that shoulder the biggest tax burdens in this country. That's why self-employed contractors have hourly rates that others think are 'outrageous'. When you consider that their base tax rate is roughly 40.3%, and they have business expenses that are often NOT 100% deductable, they're not making all that much money.
Toasthead
Diamond Member
- Aug 27, 2001
- 6,621
- 0
- 0
Originally posted by: tec699
I'm not whining about this issue but I do think it's a Jersey thing and I have a hunch my parents would be paying much less if they were in another state. Well let's exclude California and New York.
NJ treats small business owners like sh*t in my opinion.
If you dont like it then MOVE! Its very simple, but bitchng abouthow much taxes you have to pay is like complaining your too beautiful.
Modeps
Lifer
- Oct 24, 2000
- 17,254
- 44
- 91
Oh, and DAGTA, the reason it's so high is because EVERYTHING you do with a business is deductible. Gas, Equipment, Rent, Marketing (100% Deductible and a lot of things can be considered marketing). In the end, you probably should be paying less than most people pay (which you're close to right now)
Somehow I doubt it. The people who pay the most for taxes aren't eligible for most of the services because they are need based. Somehow I don't think he is getting school lunches, somehow I don't think their home is subsidised, Somehow I don't think the state is paying for their health costs, etc.
But, you guys aren't asking relevent questions. things like how much did his parents earn? was the tax amount just state or was it federal/state/FICA? I just looked through Maryland's tax book and if I had paid $16,000 in state taxes my taxable income would have been $337,947.37.
I should have stated how much my parents made last year but I didn't. Anyway, they made over $200k last year. Before you, people start flaming me please remember that when you own a business you have a lot of overhead. Rent, help, insurance, product, etc... We aren't exactly millionaires but my parents do ok financially.
The reason I posted this message is that NJ has to be one of the worst states when it comes small businesses. Instead of giving the much-needed breaks to people just starting out in their own small business the state taxes them to death. My mom was telling me that she was looking at the NJ website and there are people that owe hundreds of thousands of dollars in taxes from over the years. Most are from the North Jersey area and most are people that have only lasted a few years as a small business entrepreneur. My parents have been in business for 8 years by the way.
As smc13 has stated I'm not getting any of the services available to me. I don't get Medicaid and other services that "the poor" are entitled to and that's fine with me. I'm not bitching about that but please remember that it's people like my parents that are paying into a system and getting nothing in return. Yea? I know that are roads are being paved and that the police are protecting our streets and it happens because of our taxes. Therefore, I guess we do get something in return but I feel that NJ needs to lower the taxes for small business owners or else there aren't going to be any left.
The reason I posted this message is that NJ has to be one of the worst states when it comes small businesses. Instead of giving the much-needed breaks to people just starting out in their own small business the state taxes them to death. My mom was telling me that she was looking at the NJ website and there are people that owe hundreds of thousands of dollars in taxes from over the years. Most are from the North Jersey area and most are people that have only lasted a few years as a small business entrepreneur. My parents have been in business for 8 years by the way.
As smc13 has stated I'm not getting any of the services available to me. I don't get Medicaid and other services that "the poor" are entitled to and that's fine with me. I'm not bitching about that but please remember that it's people like my parents that are paying into a system and getting nothing in return. Yea? I know that are roads are being paved and that the police are protecting our streets and it happens because of our taxes. Therefore, I guess we do get something in return but I feel that NJ needs to lower the taxes for small business owners or else there aren't going to be any left.
My mom is at her business from 7am-11pm 6 and sometimes 7 days a week. It's primarily a summer business so she doesn't keep that schedule all year. It's still draining though! When I get the chance, I try to take a bit of the stress off her so she can get much needed rest.
Owning a business isn't a joke! People have a misconception that you open a business and the money starts rolling in. lol, I wish! It takes a lot of hard work to make a business successful and when people find this out most get cold feet. How many people are willing to spend 15 hours a day at a store for 6-7 days a week?
Look at Purdue's life. The "turkey guy" would literally spend all day in his office/farm and would sleep there at nights and would do the same thing all over again. He was worth Billions when he passed away this year. How many people are willing to make those sacrifices? Not many. People don't see the hard work as they only see the end result.
EIGHT PERCENT? I didn't even know that was possible.
WTF? I am angry again.
lol...
Granted, as he says, a business has overhead that a normal individual doesen't have.. so we can't see the whole picture, but um....
When you're grossing 200k, 16k becomes somehow.. smaller. I bet they spend more than 16k on other things; probably necessary, but that doesen't mean they're getting the best price, or whatever.
Instead of bitching about taxes, which you aren't going to be able to do anything about, why don't you post the entire financial breakdown and ask for advice on how to reduce unneeded spending in areas that you can do something about?
sixone
Lifer
- May 3, 2004
- 25,030
- 5
- 61
What are you b!tching about? Do you not know that all your money belongs to the government, except for what the politicians allow you to keep? The almighty government makes it possible for your parents to own their own business, so it's time to pay the piper.
:disgust:
:disgust:
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