Will raising taxes on high earners really cost jobs? ?
Business expenses are fully deductible, which means my tax rate has no effect whatsoever on my business capital. ?The tax rate I pay is applied to my profits, and only then after I take my personal deductions. ?It is only taxable income over $250,000 that would be hit with the higher rate.
I, unfortunately, do not have an adjusted gross high enough to be effected. ?Very few small business owners do.
But what if I was one of the 2% that would be effected?
Every taxable dollar over $250K is currently taxed at 35%, which means I put $0.65 in my pocket. ?Under the new rate I would put $0.61 in my pocket.
This is not trivial. ?Really. ?Because for every $1,000,000 of adjusted gross income I report my taxes would increase $40,000.
Put it into context, though. ?Right now I put $650,000 of that million in my pocket. ?It would become $610,000.
That, then, is the real question. ?For those business owners paying taxes on earnings over $250K, their living wage WILL go down. ?But it sure wouldn't be enough to change my lifestyle. ?And it wouldn't make me change my business plan.
I mean, $40,000 would buy me a very nice car. ?But I think I could buy a nice one with the $610K I'd still have. ?
If you are interested check the link. ?I looked at this from a slightly different perspective. ?Funny thing about math. ?I came to the same conclusion......
Billings Gazette, November 10:
http://billingsgazette.com/...
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