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| Re: Flat Tax All businesses, from "Mom N' Pops Widgets" to Microsoft would take their total income, subtract total expenses and if the result is a positive amount (profit), pay tax on that amount at a rate of 17%. Expenses would include purchases of goods and services, capital equipment, structures, land, wages and contributions to retirement plans. The question is whether your effective rate is over 17% currently I bet it is
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| Re: Flat Tax It is not all good: An important deduction for small business owners that would disappear under the flat tax: the deduction for one-half of self-employment tax paid. All small business owners, including those who own the smallest of home-based businesses, are currently entitled to this deduction because it helps to offset the self-employment tax paid on their profits. Currently, employers and employees each pay half of the 15.3 percent that is taken by the feds for Social Security and Medicare taxes. Self-employed individuals have to pay the full amount, hence the deduction for one-half of self-employment taxes paid. |
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| Re: Flat Tax Neil Boortz has a book on it this is what he says about flat tax and businesses: The FairTax is the ONLY tax reform proposal that would make America the number-one tax haven in the world for businesses! The United States would be the only country in the world in which businesses, domestic and foreign, could operate without any tax component on tax or labor. |