Tkang_TKD said:
Actually, I wonder if it would, considering the Total income for Pres. Bush would exceed 200,000. The tax stuff relating to small businesses is kinda confusing for me.
Again, I am not a tax attorney, and I don't play one on TV, so take this with the appropriate caveats.
A) Seantor Kerry states he will roll back the Bush tax cuts on those making more than $200,000.00 per year.
B) President Bush (and Vice President Cheney) state that
900,000 small businesses pay taxes based on the personal income tax structure and will be subject to this change because they are structured as 'Sub-Chapter S' Corporations or 'Limited Partnerships'.
C) Kerry is arguing that President Bush can be counted as one of those
900,000 small businesses because of the way he listed the income from an outside source on his taxes (in the year 2001 & 2002 according to Factcheck.org).
Yes, because President Bush's salary as President is $400,000.00 per year, the 'other source' income would also be taxed at the highest rate, which would be higher under his plan. So, my earlier statement is a bit misleading, perhaps. Let's see if I can give a more relevant example.
Suppose I work as a civil servant in some capacity, say a school bus crossing guard. My income is $5.15 per hour (minimum wage), but for the sake of argument, I work 40 hours a week, 52 weeks a year; the math says my income is $10,712.00 for the year. (Ok, for this example, you can double that if you want, or even double that .. go ahead, its OK.)
To help make ends meet, I teach karate at the local YMCA two nights a week. Lets say I earn $60.00 per night from this endeavor. I earn an extra $6,240.00 per year as a martial arts instructor. I am able to structure this income under a personal business; (sub-chapter S, anyone).
In this instance, I would be counted as one of the Presidents 900,000 small businesses that they claim a President Kerry's tax plan would hurt.
But, at these income levels, I would not be subject to additional taxes. Only if I started earning significantly more from either my 'real job' or my 'side job' would I be affected.
OK ... hope that helps ... end of class ... and always consult someone who knows what they are talking about before taking
my advice 