Re: Hard working? Rant mode Re: W. on the Environment

[Julia Thompson]

On Tue, 22 May 2001, John D. Giorgis wrote:

> At 06:04 PM 5/22/01 -0500 Dan Minette wrote:
> >Well, that's what pays my bills.  My company has 1 employee: me, about $5000
> >dollars worth of capital. I run a very small business.  Oh, BTW, here the
> >taxes are _higher_ when you are self-employed. :-)
> 
> How's that?  Don't you count as a small business and qualify for all
> those deductions?

You have to pay BOTH parts of Social Security and Medicare taxes, for one
thing.  That's probably the biggest bite, tax-wise.  When you're working
for someone else, they pay half the Social Security and Medicare taxes for
you.  That's over 15% of the income from the business right there.

Say your business nets $35,000 in one year.  The Social Security &
Medicare taxes will be $4945.34.  If you're filing as a single and take
the standard deduction, your federal income taxes will be $4379.00, which
is less than the Social Security & Medicare taxes.  So those taxes take
the biggest bite, at least in terms of federal taxes.  I don't know
anything about state income taxes.

        Julia