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Where will you work when small businesses close because of the new taxes?

PLEASE READ AND UNDERSTAND THE ENTIRE POST BEFORE ANSWERING. TY!

Unless something changes I will probably close my business when Obama's new taxes start in 2011. My sole proprietorship(mom & pop) business files an individual return. We made $280,000.00 last year. After payroll, taxes and business expenses my family made $70,000,00.

Under Obama's new plan I will no longer be able to "itemize" deductions. That means I can't claim ANY business expenses such as payroll and the cost of producing the goods I sell. Based on these projections my family will make less than $20,000.00 total for the yr. This is with me and hubby working 50 plus hr weeks.

Small businesses like mine are the backbone of the country. Where will people work?

http://blogs.abcnews.com/politicalpunch/2009/02/obamas-budget-a.html I will post link below.

Yes, it is a blog. However, it is written by ABC's Senior White House Correspondent.

Answer Question
 
yourspecialkid

Asked by yourspecialkid at 12:26 PM on Apr. 29, 2009 in Politics & Current Events

Level 35 (74,634 Credits)
Answers (23)
  • Sounds like you need to go back to school and get a degree huh just like everyone else its sad but what can you do ?

    Anonymous

    Answer by Anonymous at 12:28 PM on Apr. 29, 2009

  • I will continue to work at the same place I do now.
    Imaginaryfriend

    Answer by Imaginaryfriend at 12:46 PM on Apr. 29, 2009

  • Uhm the itemized deductions is on personal taxes. Don't you file them under the Buisness with special forms and all. Perhaps you should actually talk to an accountant or someone else equally versed in tax law.
    momandvet

    Answer by momandvet at 12:47 PM on Apr. 29, 2009

  • Your personal income is 70,000. Your buisness income is 280,000 those are seperate amounts.
    momandvet

    Answer by momandvet at 12:48 PM on Apr. 29, 2009

  • Continue my small business that makes under the amount needed for higher taxes, like many of the other small businesses that I know.

    I'm curious, what kind of small business do you have where you make 280,000 a year?
    LadyChamp

    Answer by LadyChamp at 12:48 PM on Apr. 29, 2009

  • Also you have some time to figure this out considering its changes to occur over a ten year period starting in 2011.
    momandvet

    Answer by momandvet at 12:49 PM on Apr. 29, 2009

  • Sounds like you need to go back to school and get a degree huh just like everyone else its sad but what can you do ?


    I did go to college-------this is MY business. Please READ the question.
    yourspecialkid

    Answer by yourspecialkid at 12:49 PM on Apr. 29, 2009

  • Your personal income is 70,000. Your buisness income is 280,000 those are seperate amounts.

    The 280 was our TOTAL family income...we were left with 70,000.
    yourspecialkid

    Answer by yourspecialkid at 12:51 PM on Apr. 29, 2009

  • I'm curious, what kind of small business do you have where you make 280,000 a year
    me to
    Anonymous

    Answer by Anonymous at 12:51 PM on Apr. 29, 2009

  • Uhm the itemized deductions is on personal taxes. Don't you file them under the Buisness with special forms and all. Perhaps you should actually talk to an accountant or someone else equally versed in tax law.

    Sole Proprietorships are a type of business. They don't use a special return. You just claim your business expenses as itemized deductions.

    I do have an accountant, that is how I know what I am facing.

    My business manufactures items for special needs/autistic children and adults. The income also includes my hubbies.

    With a sole proprietorship all household/business income is rolled into one on the tax return as are all itemized deductions. Some itemized deductions include donations to charity and mortgage interest.
    yourspecialkid

    Answer by yourspecialkid at 12:54 PM on Apr. 29, 2009

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