How Business Owners Can Prepare for the Coming Money Grab
By Tony Bass
I am pissed off!
- Top tier tax rates have been increased from 35% to 39.6%
- 55 legal tax deductions just expired
- 11 new taxes were created to support Obamacare
- My family health insurance policy has been cancelled
- It appears our family health care cost will double before year end
- I just figured out I am a MINORITY
According to the US Census we have 313 million people in the USA and 28 million businesses. When you look at the data a little closer you learn there are only 5.9 million EMPLOYER businesses. Think about this for a moment. 5.9 million companies create the jobs needed to support 313 million people! If youre like me, and you own one of these EMPLOYER businesses, youre a MINORITY. Statistically, just 1.9% of the population can be counted as an EMPLOYER.
If you own your business, youre a minority. Most people have jobs. We CREATE jobs. We match 100% of our employees social security taxes. We pay 100% of state and federal unemployment taxes. We pay for 100% of workers compensation insurance. We buy property and equipment in greater quantities than the average citizen paying sales and use taxes along the way. Youd think the leaders in Washington would recognize what an important minority we are! Well, they have.
Now our government is about to bend us over and &. You know whats next. Our tax bill could easily increase 30% to 50% by the end of this year. Thats why Im pissed off. How about you?
Take a look at the chart below. See where you and your family fit within the six income categories recognized by the IRS. Are you in the top 50% of households that earn more than $33,048? If you are, youre in the group that pays 97.3% of federal income taxes.
|Percentiles Ranked by AGI||AGI Threshold on Percentiles||Percentage of Federal Personal Income Tax Paid|
|Note: AGI is Adjusted Gross Income|
|Source: Internal Revenue Service 2008|
If you are a top income producer and report income of $113,799 youre in the elite top 10% of income earners. At the same time, youre group is paying almost 70% of ALL federal income taxes paid to the IRS.
Our President has repeatedly stated that top earners could afford to pay a little more. For the last six years, he has worked very effectively to make certain this will happen. It appears to me were about to face the largest tax increase in my lifetime. This tax increase is targeted at one group of people: successful business owners. Have you prepared for the huge money grab of 2014?
With the facts above in mind, I began a quest to enhance my Power Team of tax advisers for 2014. This way, Ill make sure Im finding every legal business and personal tax deduction available in the 17,000 pages of tax code. As I write this message, I have learned some amazing opportunities to LOWER my tax bill. Unfortunately, I have overpaid my taxes in the past. Thats about to change!
If youre interested in learning more about Tax Reduction, Ill invite you to a privately held seminar with some of the best minds in Tax Law. You can learn more at www.superlawntoolkit.com/specialevent or send me an email at firstname.lastname@example.org .
Tony Bass is the co-author of The E-Myth Landscape Contractor: Why Most Landscape Companies Dont Work and What to Do About It. He provides consulting and business coaching services to owners of landscape companies.