On Wed, 6 Mar 2019 14:45:22 -0500, Tekkie® wrote:

posted for all of us...



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.

Greg, I hate to say it but filters/rules are your friend. I know you are
trying to be helpful but the trolls have their own agenda.

I am old and retired. I even screw with "microsoft" when they call me
on the phone. Give them Windows 3.1 responses to what they have you
try. It is more fun than anything on TV. I had them going for 10
minutes once. "Rod" and "Trader" just like to argue but the most
tedious thing is they quote to much. Just tell me what ****es you
off, crop the rest of that ****.


Also Schneider Electric is closing their Leesport, PA manufacturing plant. I
do not know what they manufactured there.

Square D has slanted eyes these days.