Comment by roflmao123

6 months ago

Still plenty left to pay their business taxes.

And if it’s employees? Do you ask them to contribute to the company’s taxes as well? After they’ve paid their own?

So on the $200,000 it’s reasonable to you that they have to pay $120,000 ($80k income+$40k business) in taxes?

  • Two people earning $100k each would pay $28k income taxes each, totaling $56k. Where did this $80k come from?

    • What about state and city taxes? 80k might be a tad too high but in NYC on $100k, you would only take home around $65k.

The company doesn’t have any money to pay those taxes with.

If you give the company more money to use to cover its tax bill, then that further increases the company’s taxable income.

  • Pay less salary so you can pay your taxes? This isn't as complicated as y'all seem to want to make it.

    • That’s what makes them less competitive: they have to lower pay because they don’t have the cash on hand and revenue to amortize the deductions.