Do 97% of all small businesses really make less than $250,000? | Page 2 | TigerDroppings.com

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Y.A. Tittle
Winthrop Fan
Member since Sep 2003
50104 posts

re: Do 97% of all small businesses really make less than $250,000?


And there you have it.





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LSU Patrick
LSU Fan
"My gosh, he's a freshman!"
Member since Jan 2009
13791 posts

re: Do 97% of all small businesses really make less than $250,000?


Well said.





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OldSouth
LSU Fan
Folsom, LA
Member since Oct 2011
8332 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

The GOP talking points really are funny when they start talking small business and trickle down taxes. What they mean is wealth redistribution upwards which is EXACTLY what the Bush Tax Cuts accomplished in stupendous fashion, EXACTLY as they were projected to do.


Let me explain this to you genius. I personally own 3 LLC's in my name that have no income what so ever. Situations like that bring the percentage up. Go to the LA sec. of state website and look at how many mom and pops there are that are counted as small businesses even though they went OUT of business.






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Radiojones
USA Fan
The Twilight Zone
Member since Feb 2007
7321 posts
 Online 

re: Do 97% of all small businesses really make less than $250,000?


quote:

As net taxable income? Yes. Here is why - at the end of the tax year they take everything above that line and dividend/bonus it out. Otherwise they end up paying a corporate tax rate of 35%+ and then get hit on the personal side for 35% or their personal tax rate again.

If at the end of they year they did not do this their effective tax rate would be crushing. So technically Biden could be right but only in as much as the tax code forces small businesses to play games to avoid having most of their income confiscated by the government to go to non-producers.




This is exactly what we did the last time we had a great year. Been a while though






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lsufan1971
LSU Fan
Zachary
Member since Nov 2003
2627 posts

re: Do 97% of all small businesses really make less than $250,000?


It depends on the math you use. Are we talking net after tax income? I know 4 guys that own small businesses that net more than 250K. If you include every part time job someone can call a "business" then you may can get it to 97% but I still doubt it.
Increased Regualtion and the Dodd-Frank act have also contributied to slowing down small buisness growth. I can tell you it is harder to get a small business loan today than it was 4 years ago. Even for a company that has little debt and has 15+ years of history.
The problem is this administration is clueless how a business works. Until the uncertianty of higher taxes, and more regualtion are gone the path of stagnation will contiune.






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Choctaw
Navy Fan
Pumpin' Sunshine
Member since Jul 2007
52691 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Yep.

Sorry if you bought the GOP line about taxing the small businesses and job creators

The GOP talking points really are funny when they start talking small business and trickle down taxes. What they mean is wealth redistribution upwards which is EXACTLY what the Bush Tax Cuts accomplished in stupendous fashion, EXACTLY as they were projected to do.


that 3% accounts for over 50% of small business income






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
36136 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

As net taxable income? Yes. Here is why - at the end of the tax year they take everything above that line and dividend/bonus it out. Otherwise they end up paying a corporate tax rate of 35%+ and then get hit on the personal side for 35% or their personal tax rate again.

If at the end of they year they did not do this their effective tax rate would be crushing. So technically Biden could be right but only in as much as the tax code forces small businesses to play games to avoid having most of their income confiscated by the government to go to non-producers.


Might want to mention all most are doing is paying themselves a salary since they run the business.

Example: Small business makes $1M in profits after expenses. Small business owner pays himself $1M in salary so as to avoid his business having to pay anything in taxes.






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Choctaw
Navy Fan
Pumpin' Sunshine
Member since Jul 2007
52691 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Let me explain this to you genius. I personally own 3 LLC's in my name that have no income what so ever. Situations like that bring the percentage up. Go to the LA sec. of state website and look at how many mom and pops there are that are counted as small businesses even though they went OUT of business.


exactly. that 97% also includes people that buy/sell online and report that income to the IRS.

no employees






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V4L
Tennessee Fan
Tennessee
Member since Jun 2012
5 posts

re: Do 97% of all small businesses really make less than $250,000?


Increasing tax for the rich and business owners with do nothing but hurt the economy even more. For example:

Less taxes for the rich (my boss), means more profit for the company I work for, that in turn means more employees/better pay for me. All this will result in more spending from the American people to make a better economy.







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skidry
LSU Fan
Member since Jul 2009
974 posts

re: Do 97% of all small businesses really make less than $250,000?


So you're saying that under the Bush Tax cuts, the upper class paid no taxes and in fact received money from the govt?? Wow...





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memphis tiger
LSU Fan
Memphis, TN
Member since Feb 2006
4819 posts

re: Do 97% of all small businesses really make less than $250,000?


What's shockin to me is that Obama and Biden have arbitrarily determined that $250,000 is the cuttoff.

Anything above that is too rich or too big a business.






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Mid Iowa Tiger
Iowa State Fan
Houston
Member since Feb 2008
1917 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

What they mean is wealth redistribution upwards which is EXACTLY what the Bush Tax Cuts accomplished in stupendous fashion, EXACTLY as they were projected to do.


Another thing. How the hell do you do wealth distribution upward? I have yet to see a poor person with wealth to take that is the biggest fallacy out there. Poor people do not have wealth if they did they would not be poor.

Now if you mean charging people for goods and services and not giving shite away like the Obama phones then yes I am one evil mother f'er because I charge for my time and effort. I do not have the government force people to give me money under the threat of imprisonment though. My customers come to be because I do what I do better than my competitors.






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Summer of George
LSU Fan
Baton Rouge
Member since Apr 2010
2600 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Might want to mention all most are doing is paying themselves a salary since they run the business.

Example: Small business makes $1M in profits after expenses. Small business owner pays himself $1M in salary so as to avoid his business having to pay anything in taxes.








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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
40304 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Biden was also correct about Hedge Funds and Private Equity Funds that make billions and billions a year as they are "small businesses"



How does that follow SBA general size guidelines?






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
36136 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Another thing. How the hell do you do wealth distribution upward?


Simple. Cut rates on dividends and cap gains. Wealthy have more money to spend and a greater capacity to obtain goods and services in proportion to the baseline before the tax cut since they have more of that type of income.






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Choctaw
Navy Fan
Pumpin' Sunshine
Member since Jul 2007
52691 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

But the president is trying to whip a fast ball by you. This 3% fallacy “is one of the more misleading statements in the long history of economic propaganda,” reported Kevin Hassett and Alan Viard of the American Enterprise Institute, in The Wall Street Journal.

First of all, the 97% the president calls small business owners include people who sell whatever they can on eBay, and then report that income to the IRS as small business income, note Hassett and Viard. They don’t hire workers.

Small businesses typically file as sole proprietorships, partnerships, and what’s known as S corporations. At least three quarters of small businesses file taxes on business income at individual rates, says the NFIB.

Hassett and Viard found that, according to IRS data, a whopping 48% of the net income of small businesses was reported on 2007 tax returns from the very households the president says he wants to protect. Compare 48% to the president’s 3%, and you can see how habitually misleading the White House and Democrats are.

Next, the president is saying just 3% of small businesses will be hit with his tax hikes next year, or some 940,000 taxpayers, according to the Joint Committee on Taxation (JCT).

However, this 3% will account for more than 53% of the $1.3 trillion in small-business income that will be reported on individual tax returns next year, the JCT says.

That means more than $689 billion in small-business income will be hit with higher taxes if the president has his way. The president wants to take out of small business owners’ pockets tens of billions of dollars to pay for his deficit spending that small businesses then won’t have to create jobs.

These JCT estimates have been out there, but the Administration studiously ignores them.

For instance, the JCT has already estimated that in 2011, this 3% the president wants to hit with higher taxes amounted to ”just under 750,000 taxpayers,” adding that “50% of the approximately $1 trillion of aggregate net positive business income will be reported on returns that have a marginal rate of 36 or 39.6%.”

Small businesses create the lion's share of jobs in the U.S. economy; 64% of jobs that are created in this country are created by small business. The Small Business Administration notes that small businesses employ about half of all U.S. workers.






This post was edited on 10/12 at 1:09 pm


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lsufan1971
LSU Fan
Zachary
Member since Nov 2003
2627 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Example: Small business makes $1M in profits after expenses. Small business owner pays himself $1M in salary so as to avoid his business having to pay anything in taxes.


Apparently your company is located in Fantasy Land.



This post was edited on 10/12 at 1:08 pm


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Mid Iowa Tiger
Iowa State Fan
Houston
Member since Feb 2008
1917 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Simple. Cut rates on dividends and cap gains. Wealthy have more money to spend and a greater capacity to obtain goods and services in proportion to the baseline before the tax cut since they have more of that type of income.



So if I keep more of MY money (yes I earned it to begin with) that is redistributing wealth upward?

What bizaro world do you live in.

If I keep what is mine it has not been taken from someone.

Redistribution is jacking my taxes up to give it to someone else.







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CptBengal
USA Fan
BR Baby
Member since Dec 2007
40911 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Aparently your company is located in Fantasy Land.




nah dude, hes a tax and economic expert attorney.

he's so smart you just think his insane ramblings are wrong. He said to trust him.






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Mid Iowa Tiger
Iowa State Fan
Houston
Member since Feb 2008
1917 posts

re: Do 97% of all small businesses really make less than $250,000?


quote:

Example: Small business makes $1M in profits after expenses. Small business owner pays himself $1M in salary so as to avoid his business having to pay anything in taxes.


Apparently your company is located in Fantasy Land.


Uh no, that is exactly how it works for many of us (except for the $1 million part - but two years from now we should be there as well).






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