Bobthebuilder352
Well-Known Member
Here is the flaw. My company makes $1m this year, if I sit on the cash in the company I have to pay Corp taxes on it, so I pay myself out the full amount as ordinary income. I could make zero next year but if I left it in the company I paid ~20% just to leave it for a reserve. I know boo hoo for me but for many small business where income can vary tremendously year to year this is a problem. Also if I made zero last year, $1m this year, and $0 next year my tax rate is a lot higher than someone who made $333k of that over three years. I guess the real take away is I need a better tax attorney?COMPLETELY disagree. People making over $400K should pay way higher percentage tax rates and Corporate taxes should be raised.
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