On Tuesday, March 5, 2019 at 7:35:36 PM UTC-5, wrote:
On Tue, 5 Mar 2019 14:42:00 -0800 (PST), trader_4
wrote:

On Tuesday, March 5, 2019 at 5:19:15 PM UTC-5, wrote:


I thought we were talking about personal income tax, not corporations.
It started with Trump's personal tax cut. And sadly, you didn't answer
the simple question.

You really have two options:

A - What you proposed was a new 2% tax on individuals gross income,
in which case PROFIT from a small business is treated just as it is
today. PROFIT (not sales receipts) shows up at the beginning of 1040
where it's added with salaries, interest, etc to get total GROSS INCOME.
So, that profit would be taxed 2% just like a salary. That is the only
logical, sane way, so that's what I believed you meant. A $50K
business profit gets taxed $1000 just like a $50k salary. And that is
exactly how the business profit is handled today, only the profit shows
up as gross income to the individual at the beginning of form 1040.

B - For business owners, your tax would apply to business total sales
applying the 2% tax not to their personal return GROSS, but instead
to the business GROSS, ie their
total sales. That's what your buddy Rod claims you meant. In which case
a business that has $3 mil in revenue, but only $50K in profit, gets taxed
$60K.

So, which is it?

I thought we already decided that.


Decided what? Why is it so hard to answer the simple A or B question
above?


Income is profit for a business.
(after Schedule C expenses).

That isn't the issue and isn't the question.



If they are an "S" we would not even be having this conversation.

You're the one that interjected another red herring, the S issue.
Whether it's an S corp or just a simple sole proprietorship, the
issue that's been raging for a day now remains exactly the same. Let's go
through it one more time. In the context of a discussion on Trump's
tax cuts, tax refunds, and the deficit, you proposed a new, additional
2% tax on "GROSS". You didn't say gross what.

Yes?

I assumed it to mean personal gross income as reported on 1040.
In which case if a guy
owns a small business and has $300K in sales with $50K in profit, then he
would pay an additional $1000 in tax, just like a guy who earns $50K
at a job. The sales never entered 1040 before, only the PROFIT.

Rod, says no, the above guy has to pay $6K, because by gross, you meant
not the gross of his personal income, as reported on 1040, which would
show the $50K of business profit, but the "GROSS" of the business, which
would be $300K on Schedule C and he'd owe $6K in tax.

So, again, which did you mean? It can't be both




It is certainly a symptom on this group that I put a simple concept
out there and suddenly we are rewriting the whole tax code.

The problem is you said something about putting a 2% tax on existing
taxes based on "gross" and didn't define what you meant by gross.
I assumed it to mean your personal income tax gross, because that's
what we were talking about. In which case, $50K, the business PROFIT
is what shows up as gross income on the owner's personal return.

Why is every off hand idea worth 1000 lines of bull****? You people
just like to argue.

So sad. YOU made a proposal for a new 2% tax. Why do you make proposals,
toss out ideas, if you don't want them discussed? And 90% of the arguing
would have been avoided if you'd just answer the very simple question
I quickly asked. Instead, you're still diverting and now implying that
the problem is not with your lack of clarity or response to a simple
question. The question is right there in the post you just responded to
and instead of answering it, you instead to attack others here?

Here it is again:


You really have two options:

A - What you proposed was a new 2% tax on individuals gross income,
in which case PROFIT from a small business is treated just as it is
today. PROFIT (not sales receipts) shows up at the beginning of 1040
where it's added with salaries, interest, etc to get total GROSS INCOME.
So, that profit would be taxed 2% just like a salary. That is the only
logical, sane way, so that's what I believed you meant. A $50K
business profit gets taxed $1000 just like a $50k salary. And that is
exactly how the business profit is handled today, only the profit shows
up as gross income to the individual at the beginning of form 1040.



B - For business owners, your tax would apply to business total sales
applying the 2% tax not to their personal return GROSS, but instead
to the business GROSS, ie their
total sales. That's what your buddy Rod claims you meant. In which case
a business that has $3 mil in revenue, but only $50K in profit, gets taxed
$60K.



So again Fretwell, with your proposed new 2% tax, did you intend A or B?
Why is it that you won't answer that simple, direct and very pertinent
question? It can be answered with one letter, A or B.