Taxes killing businesses?

I just got done figuring my taxes on the business. I do this as a retirement supplement. It looks like I'll be going out of business. With the taxes this year, it's not worth it. Next year is guaranteed to be worse. Tax rates are going up, my income from what I've stockpiled will go up so I'll be in an even higher bracket.

When I retired, what I DIDN'T want to do is just sit around. Tried the volunteering thing (Red Cross and Habitat for Humanity) both were disasters and I won't be volunteering again.

I was even thinking about expanding the e-waste and hiring someone to help. I couldn't afford it.

Thanks to our elected officials for making sure we lose, regardless of what we do.

Mick, I am sorry to hear this. It sucks when it hits companies, but it is even worse when it hits those individuals that are willing to work on their own. It is a shame.
I know the new taxes will have huge impacts in NJ where medical companies are going to get hit hard.
Read this link about how even without profit, some medical device companies will still have to pay. It makes no sense. I ride with some guys in the device field and they say not only will there be layoffs, but any product line that was marginal will get completely cut.

As 2013 Begins, Get Ready For An ObamaCare Tax Onslaught - Forbes

People "seem" to be yelling for more taxes on the big corperations and the "rich" but is it just what those in the media want? I am also retired and am starting to think that ebay sales may be the way to go to keep some income "private".

As a retired military person I have seen my drug co-pays increase 2-4 times over that last 12 months and Febuary they are going up again(please read this as me paying more taxes).

The increase in taxes stifles the desire to start or expand business as Mick has pointed out in his post. I have a believe that many of the politicians in both parties are counting on the attitude of many to look to government for all their support rather than themselves. obamacare was designed so that businesses would choose the small fine for not providing health insurance rather than provide health insurance.

This can be seen when many large corperations supported the passage of obamacare. Now the politicians can say "well business failed to provide health insurance so the government must step in and make all healthcare owned by the government".

They(government types) will use many interesting non threatening terms like they did with obamacare(real name is "affordable healthcare act"). This is something they have been doing for years. I expect the law I expect to pass this year restricting our gun rights will have a very attractive non-threatening name that we might vote for is we just read the name. Sorry I ran on, Mike.

Screw Obama care, it'll do nothing but raise costs, which it's already doing, and put a govt agency between you and the treatment that would save your life.

I've owned my business for 15 yrs. Each year it gets harder to stay in business. Everyone has their hand in your pocket. It's gotten so an honest person can't get ahead. Insurance cost/ state and local government as well as the feds. Blue collar workers are the back bone of this country yet we are continually crapped on.

Amen brother amen

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Originally Posted by junkfreak

I've owned my business for 15 yrs. Each year it gets harder to stay in business. Everyone has their hand in your pocket. It's gotten so an honest person can't get ahead. Insurance cost/ state and local government as well as the feds. Blue collar workers are the back bone of this country yet we are continually crapped on.

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quitcher *****en we all know yer one of them fat cat business owners like the rest of us. iffen yas not one o them beholden to the gubment ( the 47 % by now probably 48 or 49%) yous aint a gonna vote the benevolent takers and givers back in.

They aren't going to be happy until that 47% is at least 80%. what better way to eliminate all those elderly useless eaters then to shut down medicine and available, affordable health care.

We have had Kaiser Permanente for well over 20 years...our out of pocket has seen steady increases through the years but this year it went through the roof. It never would have got to this point if they would have just minded their own dam n business.

As far as taxxes go it is a cost of doing business the problem i have is when being honest results in those around me getting hurt.

if i have 6 employees i have to upgrade my employees by x if i have 15 i have to have seperate male/female restrooms and be handicapped accessable to me i am sorry but way to stiffle business development.


my payroll taxxes are rediculous and income taxxes moreso i see a big change in the near future as to where me and alot of other businesses go..

You aint seen nothin yet! This is just the beginning.

Gonna be a scary ride.Hang on !!

The tax rate is designed by large corperations to keep themselves extremely profitable while keeping startups small because mid sized companies are considered competition. Large companies have millions of deductions, they get them written into law.

I don't understand how taxes make anything profitable not worth it. The more you make the more you pay (in theory depending on how you made that money), plenty of people want to have that kind of problem. Could you explain the problems? I can see having issues with special insurance, safetly equipment, EPA regulations, etc making some businesses unprofitable, but taxes?

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Originally Posted by KZBell

We have had Kaiser Permanente for well over 20 years...our out of pocket has seen steady increases through the years but this year it went through the roof. It never would have got to this point if they would have just minded their own dam n business.

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Kaiser Permaneta started out as health care for the Keiser shipyards that turned out Liberty ships by the ton during WW2. The owner owned steel and aluminum plants but the only thing that remains as far as I know is the hospitals and insurance division, funny how healthcare can be a $47.9B industry just for Keiser Permanente alone every year. Kaiser Permanente - Wikipedia, the free encyclopedia

You have to ask why is health care so expensive and so profitable. Rates go up because insurance companies get a cut of every dollar, so if costs go up so do their profits. Many states only have one insurance provider, kind of like the mob cutting out teritories nobody else can compete in. Obamacare was a gift to insurance companies, now everybody has to have insurance. If everyone has insurance then all health care costs are paid for by everyone, before if you had to get emergency medical care and had no insurance then the hospitals just jacked the rates up for those who can pay (insurance rates keep going up) while sticking the local states with some of the bill. We are better off with national healthcare cutting out insurance companies all together, then looking for ways to cut costs.

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Originally Posted by unknownk

The tax rate is designed by large corperations to keep themselves extremely profitable while keeping startups small because mid sized companies are considered competition. Large companies have millions of deductions, they get them written into law.

I don't understand how taxes make anything profitable not worth it. The more you make the more you pay (in theory depending on how you made that money), plenty of people want to have that kind of problem. Could you explain the problems? I can see having issues with special insurance, safetly equipment, EPA regulations, etc making some businesses unprofitable, but taxes?

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In the link I provided, there is this:
"The most controversial of the latest ObamaCare taxes is the Medical Device Tax that hits entrepreneurial firms making equipment such as heart valves and hip replacement parts. They face a 2.3% profit on gross sales – a tax they must pay even if they have no profit at all. Many firms say this tax – slated to collect $29 billion over 10 years – will soak up virtually all of their research budgets."

If you or any company gets taxed on gross sales, you are NOT paying on profit. If it applied to us scrappers, look at it this way:
You sell $1,000 of RAM (or steel, or copper) to a buyer. Even before you write off your transportation costs, shipping, purchasing costs, etc, you are TAXED $23 right off the bat. So if you were making a small profit last year, this year you are making even less because the tax bite comes before you get to write anything off.
"The more you make the more you pay" is not accurate, it is "the more you sell, the more you pay" regardless of profit or how much you make.

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Originally Posted by unknownk

The tax rate is designed by large corperations to keep themselves extremely profitable while keeping startups small because mid sized companies are considered competition. Large companies have millions of deductions, they get them written into law.

I don't understand how taxes make anything profitable not worth it. The more you make the more you pay (in theory depending on how you made that money), plenty of people want to have that kind of problem. Could you explain the problems? I can see having issues with special insurance, safetly equipment, EPA regulations, etc making some businesses unprofitable, but taxes?

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I agree if you business is paying taxes get another CPA. Business that are setup right don't pay taxes and if they have pre-profit taxation than that just gets passed on to the customer. Complaining about taxes is what business that are structured incorrectly for there purpose do. CPA are paid for by the hour so keep good records and have it all in order and organized. Do this so that you can buy the better CPA. A business should also not do its own taxes. There are too many variables that you don't know about.


Eric

whoever has the gold makes the rules. once you understand how our corrupt monetary system is designed then you will realize
"we are all just slaves to the system".
The American Dream Film-Full Length - YouTube

the banks own dang near everything, including the government that makes the rules. this is why mega corporations are nearly tax exempt while the rest of us pay the bill.

To tax companies is false taxation to my thinking. Every company adds the tax liability to the cost of doing business. What that means is the individual who use/purchase their product/service is the one who PAYS the taxes.

Much like your income tax being withheld from each paycheck this is the perfect way to hide the fact that individuals are the ones paying all the taxes. This is a "shell game" played by politicans who hide from you the truth about who is getting away with not paying taxes. Yes there are unequal taxes being assessed onto companies and individuals but that's what the politicans use to get campaign contributions and cause discontent amoung the citizens. The flames are being fanned dailey in the tv shows we watch and the "news" programs being pushed as truthful.

Here's a link to the proposed "Fair Tax" What is the FairTax | What is a Consumption Tax | Tax Reform Solutions - Americans For Fair Taxation

The short answer to what is the Fair Tax is all income based taxes are eliminated and replaced with a sales tax. I highly recommend the very easy read on the link. Mike

miked is exactly right. there is no such thing as tax all tax is passed to the consumer it is either a form of inflation or confiscation, those who can afford tax lawyers by the pack don;t pay taxes. i.e. GE, Warren Buffet, Bill Gates et al. the "47"% don't pay taxes, the taxes are payed in large by the middle class, the small business and the micro businesses. The 47% by the way, not long ago were the 15%, the tax burden is funneled in different ways to the shrinking "middle class" and the working poor.

Some forrns of this are the fuel cost, double what it was 4 years ago, utility bills double what they were 4 years ago and food prices nearly double what they were 4 years ago. none of these are now counted in the cost of living or inflation index.

it is not about Obummer or Bush. republican or demoncrat, it isd about them and us plain and simple.

Its hard to run a legit business when so many are flying under the radar with no taxes and no overhead that you have to compete with. I am sure you have heard the phrase "go big or go home", well its the ones that went home that are winning this war.

there are obviously many different opinions on Tax, fees, permits regulations etc. all of them are represented here in the forum from the mega yards to those sssi scrappers (survival/supplemental ) scrappers.

I am one of the fortunate ones who, through this forum, and just plain refusal to give up, in the space of about a year has moved from an ssi scrapper to one who this year well pay taxes again.

fortunately my property is rated to do this business as long as I comply with regulations and I
have done so.

there are however, those out there by the 10s of thousands who are where I was a year ago. there will always be those out there. do I expect them to pay taxes and file for permits when they are struggling to put food on the table or fuel in the truck no I don't, nor do I care, its called American ingenuity, making something out of nothing.

I don't like taxes of any kind or over regulation, but I do understand the need for both tax and regulation, and I do expect those who are fortunate enough or lucky enough to do what I have done in this last year to pay their share weather I believe it is a fair share or not, I expect them to move forward to comply with regulations they can. That said we all know there will always be those out there who will always struggle to put food on the table in any micro business.

do I expect that person to pay to support those who set on their fat a** at home in front of the big screen talking on their Obummer phone, eating Doritos bought by food stamps ? no I don't.

I do however, expect them to give up their ob phone and buy their own Doritos and pay their taxes when they are able.

sry didn't expect this to be so long but it turned into a rant.

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Originally Posted by olddude

do I expect that person to pay to support those who set on their fat a** at home in front of the big screen talking on their Obummer phone, eating Doritos bought by food stamps ? no I don't.

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i agree with much of your post... but the perception that the media has given to the so called lazy american that would rather be on food stamps is somewhat misleading. yes it is true, that money could go to other things but the fact is it is such a small portion of the budget. the majority of the waste is going to fat corporations with over inflated contracts.
so when you pay your taxes... a huge percentage is going into the billionaires pockets.

taxes redistribute the wealth from the middle class to the wealthy. the media has fooled many into thinking the poor is the problem.

as long as someone is making a serious effort I have no problem with food stamps or even stipends.
in fact my Idea for help is as follows.

those who are truly disabled give them a LIVING amount say $2000 above what ever the poverty level is in that state in that state. The minim social security payment should be the same.

those who are chronically out of work and on welfare give them $50,000 a year for 3 years. in that time they get educated, trained or, start their own business or what ever. at the end of the 3 years they are done with welfare including food stamps.

what we have now is designed to keep people trapped on the gov teat for life.

Every penny you give people on foodstamps goes right back into the economy, every penny you give to large corperations in tax relief or freebies goes to the Cayman Islands or investments in China.

I think you should tax where the money is. Way back when companies were small and all income went to the owners you just taxed people. Now where most of the money is tied into corperations where it sits you should tax corperations (you know those companies that are "people" according to the Supreme Court and have the ability to dump endless amounts of money into elections). We also lost billions during the lapse in estate taxes, a few billionairs kicked the bucket without paying any taxes on it.

i'm done with this thread... if you guys can't see who is really screwing you then i can't help.

what about those guys outside the store every time I go there who try to sell me food stamp cards for half price. on secound thought I guess that drug money will end op either in the economy or mexico.

The problem with taxing big business is they don't pay taxes, they pass it on to the consumers

It will continue until private and corporate money is taken out of politics.

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Originally Posted by tombuysscrap

The problem with taxing big business is they don't pay taxes, they pass it on to the consumers

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That only works when there is no competition. Consumers only have so much money, and if Fords cost too much there are a dozen other brands to buy. Government is very decent on taxing corperations, if they have a bad year and lose money they get some credit for the last few good years they had. Invest in R&D instead of giving the CEO the money and you can write it off. The problem is industries that make a ton of money just have too many loopholes and pay nothing, and they sent the R&D to china so the investment doesn't help us here who pay for their products.

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Originally Posted by olddude

what about those guys outside the store every time I go there who try to sell me food stamp cards for half price. on secound thought I guess that drug money will end op either in the economy or mexico.

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ok, you dragged me back into this thread, lol... i do agree with you on many points (i really do!) but the problem isn't the bums and drug addicts. they are an easy target but it isn't the reason your taxes are high. the real problem is our greedy slave masters.
they will continue to raise taxes as long as we are willing to pay. and one last point: it doesn't matter where our tax dollars go... when they own everything, all the money ends up in their pocket anyway.

That would be true if china didn't own us already

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Originally Posted by olddude

what about those guys outside the store every time I go there who try to sell me food stamp cards for half price.

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well that's easy to fix, the gov't simply needs to make food stamps applicable to cigarettes, booze, and lottery tickets. I'm amazed they haven't done it yet.

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Originally Posted by volvoscrapper

well that's easy to fix, the gov't simply needs to make food stamps applicable to cigarettes, booze, and lottery tickets. I'm amazed they haven't done it yet.

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Religious types would freak if they did. People with addictions should be punished.

more taxes and new taxes are just gonna encourage more people to avoid them, were already being taxed too much as it is, its time to push for larger cuts to the government, to many buddy jobs and entitlements are being handed out

We waste money in our country; we still give aid to China FFS!! Can't GET A TOUR OF THE white house BUT WE SEND BILLIONS TO OTHER COUNTRIES WHO HATE US??! Obama's golfing day could of saved hundreds of jobs , My son had to let go 3 men who worked snow removal and lawn maintainer as contractors on a 1099 because the law changed supposedly to help the working guy but instead they lost the jobs they had and now will go live off the government!

Olddude
Don't get your blood presser up! WE did what we could do, when we were young. Let this batch of know it all,s finish it once and for all. Would it really matter?
Peace

Who
is John Galt?

I got hit hard this year, self employment tax added another 13.3% at the end and then my city also rolled back the tax break and I owed them another .05% on my take.

I honestly thought about quitting for about an hour, then I thought no, I'm not going to give up and give in. I have just tried to scrap smarter and cheaper to help make up that **** near 25% bite I am getting hit with while trying NOT to hate on the scrappers I pass on the roads who I know aren't claiming their income.

Do I blame them? No, not at that price. However, NOT claiming the income and establishing yourself as a sole proprietor at the very least is going to limit them more so than me and keep them from going as far as I might eventually go.

When I started doing this I had no idea how hard, how time consuming and how rewarding it would be. Picking up ''junk'' has forced me to examine so many facets of the industry that it has also forced me to work smarter, think smarter and want to GO farther.

Last year I doubled my income, this year I want to triple my income (fingers crossed lol) while still doing this alone. It seems the harder I work, the more I do, the higher I go - the more it costs!!

I may retain some ill thoughts for those whom I know aren't paying like I am but I won't go down and out without a fight. They can tax me, they can make me hate them for taxing me but I'm not giving up. I love doing this too much still yet to say ''Screw it.'' It's in my blood, it's my life.

now, next year might be a different story lol but this year I'm still fighting the good fight. So, I can understand those that have given up, are thinking of giving up or have been forced to give up because it just sucks big time that something we are doing to help the world and ourselves and families is also sometimes forced out of the running before it even gets very far :(

Mick, at the time of this posting, I hope you are still scrapping at the very least on a small time basis to help give you some pocket money without too much of a bite and to help keep your mind sharp.

They wanted him, they got him, bend over for Obama

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Originally Posted by newattitude

Mick, at the time of this posting, I hope you are still scrapping at the very least on a small time basis to help give you some pocket money without too much of a bite and to help keep your mind sharp.

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Oh, I'm still at it. Actually, after thinking about and reconsidering, I'm expanding and getting into buying junk cars. There's another thread about it.

i don't believe taxes are killing business at all i pay more than my fair share that being said i have a cpa and a attorney who i run my #'s past i know when to hold for how long if i owe to much i spend down or make a bad call deliberatekly to put me where i need to be. in theory most of the things you do related to your scrap business are write offs. most just don"t go full time