Heya Joe,
Since you're all bummed out about this whole deal where Barack Obama's plan would supposedly rob you of your version of the American Dream, I figured you could use a little cheering up. Also, since it seems this would be your first business venture, a quick lesson in accounting may be in order.
And thus, we begin...
So, Joe, you're planning on buying this plumbing business, and you're obviously convinced that you can make over 250 large a year running it. Bully for you.
However, Joe, you may not be aware of something...you see, when you own a business, you get an accountant. And if your accountant is worth his weight in salt, he'll find you all sorts of tax deductions you never knew existed.
But here's the great thing, Joe...that tax "increase" on the amount of money you pocket off of your business above $250k a year? Yeah, that's on over $250k of PROFIT.
You see, let's say that, for the year, your plumbing business brings in a cool million bucks in revenue from customers--great! But in the process, you also incur costs. You know, like the wages you're gonna be paying all those great guys you intend to hire, the equipment you have to buy, fuel to run your trucks around town, the cost of the trucks themselves, etc.
Guess what, Joe? If those costs add up to $750,000 of your $1 million in sales, you've cleared $250k for the year--and whatever Barack Obama does with taxes hasn't cost you a dime.
Now, if you're a REALLY awesome plumber (or you get a REALLY good accountant), and you only have $600k in costs on that $1 million in sales? Then yeah, Joe, sorry to break it to you, but you just made an annual income of $400,000. And you're probably gonna have to pay a little bit extra in taxes on the extra $150k. You poor schmuck you.
I can TOTALLY see why the horrible consequences of making 400 grand in a year and then having the government take a little bit extra from you (say, maybe $10k) and disperse it $1000 at a time to the 10 guys you hire to work for you must really make you think twice about buying your business. I mean, jeez, the awful problems you would face, being forced to try to scrape by on your $400,000 profit for the year. I just don't see how most people--including the plumbers you would've had working for you--could possibly tolerate it. I mean, what do they make, like, 40 grand each? Yeah, it must be SO much easier for them--they don't have to worry about big old meanies like Barack Obama trying to increase THEIR taxes.
OMG, I mean, making over $250,000 a year and then having to turn a little bit extra of it over to people who aren't making that much sure does send a cold shiver down MY spine, Joe, I'll tell you that. I think I'll just keep plugging along with my registered nurse's salary, making about 30% of what you'd be making, so I don't have to worry about that horrible Obama administration raising MY taxes!
The horror...the horror...