Presidential candidates and self employed individuals

[Blarp]

Not sure if it belongs in this section... But

Has anyone studied the positions of our presidential candidates on small business, and especially self employed individuals? A lot of MT's are self employed and there is a number of issues that concerns many of us. Such as:

- Taxes: who is going to lower our taxes and who is going to jack them up. A lot of times all small businesses are lumped togtehr and that may be a 25 employee manufacturing operation and my one person operation that get the same treatment

- I would definitely like to see changes to the Social Security taxes: as a self employed individual I pay BOTH the employee AND the employer portion so I am being taxed twice and I feel it's penalizing the self employed operator who is already strapped for cash

- Health insurance, health insurance, health insurance...need I say more.
I am single so I can't get a policy thru a spouse. Our local Chamber offers health insurance for members BUT the catch is that you have to have employees in order to qualify

- To continue the health insurance subject and as a MT I would like to see the government take steps to promote preventative measures like healthy lifestyle and healthy eating. For example, I have a HSA (health savings account) and you can't use these funds to pay for any preventative treatments. For example, you can't pay for your gym membership from your HSA as the IRS considers it "recreation". Same with massages: per my accountant they are in the "gray area": you have to have a medical reason but you cna't get massages to imrpve general health and wellness.

Also, what is a good way to contact the candidate and has anyone done it and what was your experience? I sometimes feel that poiticians don't know we exist.

I realize politics are an EXTREMELY explosive topic so I am deliberately not saying which candidate I am interested in. I am posting this topic b/c I genuinely want to know where our candidates stand, and not make people on this board fight over politics.

 

[Belly Jeans]

Both candidates have websites which contains most of their policies. You can also use their websites to email them. Now...I'm sure the candidate themself won't answer your email but someone on their staff will.
Barack Obama's Site

John McCain's Site

Another thought is to contact you local branch of whichever political party you belong to (or even if you don't belong to it) and they should be able to give you more one-on-one information.

Angie

 

[mr mej]

Presidential candidates and self employed individuals

Not sure if it belongs in this section... But

Has anyone studied the positions of our presidential candidates on small business, and especially self employed individuals? A lot of MT's are self employed and there is a number of issues that concerns many of us. .

The Tax Foundation provides a comparison tool

http://www.taxfoundation.org/candidates08/

- Taxes: who is going to lower our taxes and who is going to jack them up. A lot of times all small businesses are lumped togtehr and that may be a 25 employee manufacturing operation and my one person operation that get the same treatment.

Unless you are considered "politically rich", meaning making over $50K per year, you probably don't pay federal income tax, and probably still get a rebate check due to the refundable Earned Income Tax Credit (EITC) and Child Tax Credit, both of which subtract income taxes dollar for dollar and can reduce income tax liability to below zero.

Simply put, the bottom 40 percent of earners col­lectively pay no income taxes, and many actually receive checks from Wash­ington. The little tax bur­den that they pay is in social insurance taxes, as well as excise taxes (such as gas and cigarette taxes).

So for many "hard working families" (I am still trying to figure out what families don't work hard) there are no income taxes left to cut.

Unfortunately, for anyone bold enough to be successful, Barack Obama wants to raise your taxes by repealing the tax cuts already in place.

John McCain has flipped flop, deciding he is now for letting us non-hard working families keep more of our money.

- I would definitely like to see changes to the Social Security taxes: as a self employed individual I pay BOTH the employee AND the employer portion so I am being taxed twice and I feel it's penalizing the self employed operator who is already strapped for cash.

BHO wants to raise the cap on the payroll tax for SSN, meaning you pay FICA on all earnings. This is not good for small businesses, many of which report business income on a schedule c or as an S corp. This income would now be subject to FICA

But the reality is, you are not taxed twice. If you were employed, and only paid half your FICA, your average wage would be lower than being an IC where you pay your own. So you pay 6.7% less, but you will earn about 8% less. Most businesses - ours included - pay ICs about 10% more than employees because of this factor.

Health insurance, health insurance, health insurance...need I say more.
I am single so I can't get a policy thru a spouse. Our local Chamber offers health insurance for members BUT the catch is that you have to have employees in order to qualify.

You can be an employee of your own S-Corp or LLC to qualify for the plan. Problem is, current tax code counts health insurance benefits to anyone owning more than 2% of an S-Corp or LLC as taxable income.

To continue the health insurance subject and as a MT I would like to see the government take steps to promote preventative measures like healthy lifestyle and healthy eating. .

I don't think people will take kindly to being told what to eat, when to work out, etc. Businesses are doing that -- not hiring smokers, rewarding employees who work out -- and they catch and earful and the occasional lawsuit from the ACLU and Trial Lawyers sniffing out "discrimination". If a business wants to do it, more power to them. Don't like it, work somewhere else. If they all do it, get healthy or start your own business. Gov't does not offer such flexible alternatives when they get in the business of mandating behavior.

For example, I have a HSA (health savings account) and you can't use these funds to pay for any preventative treatments. For example, you can't pay for your gym membership from your HSA as the IRS considers it "recreation". Same with massages: per my accountant they are in the "gray area": you have to have a medical reason but you cna't get massages to imrpve general health and wellness.

You can thank the AMA for that. Heaven forbid anyone other than an MD can help you be well and healthy.

 

[Pompal 09.]

R&R,

Thanks for posting. I found it most informative. I liked that tax comparison. It's a bit scary though...

Great topic!

 

[?RadSkully?]

I love this website and it has helped me understand my own leanings:

http://www.issues2000.org/default.htm

 

[Zeid]

I don't think people will take kindly to being told what to eat

Well the government already does this, on behalf of Big Ag, in the form of the highly flawed Food Pyramid (http://www.mypyramid.gov/) Their plan suggests I drink 3 cups of milk per day. Disgusting.

I'm pleasantly surprised to see any emphasis on whole grains, and a decreased emphasis on meat... the industry must have failed to donate enough money to the right people or something.

To the OP, if you are interested in this topic, research the Farm Bill... it's hilariously disturbing.

 

[Blackhawks2]

This just in...

McCain has proposed eliminating capital gains taxes on small businesses. This is HUGE!

For example...say you start a wholistic medi-spa, and put $100K of your own money in as equity and $300K in debt financing (both bank loans, LOC and your personal money you lend to the business)

In 10 years, you sell the business for $500K. By that time, all of your debt will be paid off, so the sale price of $500K is relative to the $100K investment, or a cap gain of $400K.

Aside from the income you drew running the business to pay our daily expenses, that $400K is the payoff for building a successful business. And very likely, it will be the bulk of your retirement funds since few self-employed folks can fully fund their retirement account options for the full 10 years of the business operation.

Under current tax law (those Bush tax breaks for the rich) you would pay 15% on the $400K, or $60K.

Under Obama's proposal, cap gains rates would be 30%, or twice that so $120K in taxes.

McCain's new proposal would mean your 10 years of hard work would all end up in your bank account -- $400K free of capital gains taxes. You risked your investment, you reap its rewards. And let's face it, a $400K payoff after 10 years is far from being rich, so why should you give 1/3rd to the wasteful gov't (after all, you were paying income taxes on your earnings during the 10 yrs you ran the biz...they got their share)

 

[agent4927]

I tend to think more what a president can do for the whole community rather than just for me. I support obama even if it means I will pay more taxes.

 

[Whoaaa33]

I tend to think more what a president can do for the whole community rather than just for me.

This is not just about ME or any one individual. The incentive to create a business is what creates jobs.

What could be better for any community than jobs? No government program is as successful as a job in eliminating poverty, creating a culture of self-reliance and personal responsibility and giving people hope for a better future for them and their children.

The government does not create many worthy jobs -- most of them just eat up your taxes while the dole out the rest of your tax dollars in an inefficient manner. Less than 50% of the $ allocated to social programs actually get into the hands of the recipients.

When citizens know their hard work and risks in starting a new business -- over 70% of new businesses fail -- will result in a more handsome reward for that risk and hard work, they are more likely to take that risk.

To think that cutting capital gains taxes only benefits the individual receiving the benefit is only seeing a sliver of the picture.

I support obama even if it means I will pay more taxes.

Don't you worry....it will!

 

[Couman]

I support obama even if it means I will pay more taxes.

Don't you worry....it will!

Nope. It's possible that you might pay more taxes, due to your high income bracket. However, I (and most people in the US) would pay less under Obama's tax plan. Looking only at Capital Gains taxes isn't looking at the whole tax picture:

http//www.factcheck.org/elections-2008/a_new_stitch_in_a_bad_pattern.html

 

[Paco]

Nope. It's possible that you might pay more taxes, due to your high income bracket. However, I (and most people in the US) would pay less under Obama's tax plan. Looking only at Capital Gains taxes isn't looking at the whole tax picture:

Except anyone who has a mutual fund or retirement investment is an investor, and that means over 70% of the American public will be subject to the Capital Gains tax increase.

70% is more than most.

If the Cap Gains Tax increase stifles job creation -- and it does -- then those tax cuts really don't mean a whole lot to someone who does not have a job

 

[Occulty!]

Isn't selling a house for more than we bought it for also considered capital gain?

 

[rodneychristian2]

Even Alan Greenspan, (not exactly a raging liberal and a good buddy of "McBush".... er I mean "McSame"... I mean "MCCAIN".... so confusing..) thinks McCain's economic plan is a disaster and he means a disaster for EVERYONE.

Read all about it in yesterday's headlines.

 

[hvnsynt]

Isn't selling a house for more than we bought it for also considered capital gain?

yes, but there is an exemption for primary residence sales -- the first $500K of gain is exempt if you have lived in the home any 2 out of the last 5 years.

 

[num1pink_angel]

McCain has proposed eliminating capital gains taxes on small businesses. This is HUGE!

Obama has proposed the same thing.

Has anyone studied the positions of our presidential candidates on small business, and especially self employed individuals?

Here's a good article, entitled "Ask an Expert: OK, so who is the small-business candidate?"

http://www.usatoday.com/money/smallbusiness/columnist/strauss/2008-09-15-candidates-small-business-1_N.htm