Editorials

New taxes target business owners – you
Tony Bass
Tony Bass
By Tony Bass

I am mad as hell!

Here’s why:
  • Top tier tax rates have increased from 35% to 39.6%.
  • 55 legal tax deductions just expired.
  • 11 new taxes were created to support Obamacare.
  • My family health insurance policy has been cancelled.
  • It appears our family health care cost will double before year's end.

According to the US Census we have 313 million people in the U.S. and 28 million businesses. But, only 5.9 million of those are "employer" businesses, businesses that hire employees. Think about this for a moment. 5.9 million companies create the jobs needed to support 313 million people! If you’re like me, and you own one of these employer businesses, you’re a minority. Statistically, just 1.9% of the population can be counted as an employer.

Most people have jobs. We create jobs. We match 100% of our employees’ Social Security taxes. We pay 100% of state and federal unemployment taxes. We pay for 100% of workers’ compensation insurance. We buy property and equipment in greater quantities than the average citizen paying sales and use taxes along the way.

You’d think the leaders in Washington would recognize what an important minority we are! Well, they have. They've recognized us as an important source for funding the majority of this country's taxes. Our tax bill could easily increase 30% to 50% by the end of this year. That’s why I’m angry. How about you?

Percentiles Ranked by AGIAGI Threshold on PercentilesPercentage of Federal Personal Income Tax Paid
 
Top 1%$380,35438.02
Top 5%$159,61958.72
Top 10%$113,79969.94
Top 25%$67,28086.34
Top 50%$33,04897.30
Bottom 50%<$33,0482.70
Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service 2008

Take a look at the chart above. See where you and your family fit within the 6 income categories recognized by the IRS. Are you in the top 50% of households that earn more than $33,048? If you are, you’re in the group that pays 97.3% of federal income taxes.

If you are a top income producer and report income of $113,799, you’re in the elite top 10% of income earners. At the same time, your group is paying almost 70% of all federal income taxes paid to the IRS.

Our President has repeatedly stated that “top earners could afford to pay a little more.” For the last 6 years, he has worked very effectively to make certain this will happen. It appears to me we’re about to face the largest tax increase in my lifetime. This tax increase is targeted at 1 group of people: successful business owners. Have you prepared for the huge money grab of 2014?

With the facts above in mind, I began a quest to enhance my Power Team of tax advisors for 2014. This way, I’ll make sure I’m finding every legal business and personal tax deduction available in the 17,000 pages of tax code. As I write this message, I have learned some amazing opportunities to lower my tax bill. Unfortunately, I have overpaid my taxes in the past. That’s about to change!

To learn more about tax reduction, I'd like to invite you to a privately held seminar with some of the best minds in tax law. You can learn more at www.SuperLawnToolKit.com/SpecialEvent or send me an email at Tony@Tony- BassConsulting.com.

Vander Kooi Associate Tony Bass is the co-author of The E-Myth Landscape Contractor: Why Most Landscape Companies Don’t Work and What to Do About It. He provides consulting and business coaching services to owners of landscape companies.

Digital Edition
April/May 2024