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the US is in a weird position where the federal government actually has very little power. But it has tax power. So they just use taxes as a way to manipulate t

by shados 10y ago

the US is in a weird position where the federal government actually has very little power. But it has tax power. So they just use taxes as a way to manipulate things in the way they want. But as far as I understand, the US tax system is also one of the 2-3 most complicated in the world... Being an permanent resident and not being used to this from my home country, Im making a lot of suboptimal financial decisions purely to avoid complicating my taxes... eg: I avoid consulting like plague, even when I have a worthwhile opportunity to do so.

pc86 10y ago
The cost of a CPA is many orders of magnitude less than whatever "suboptimal financial decisions" you are making. Not consulting to make your taxes easier is borderline idiotic at standard 1099 developer rates. Two or three hours in a year pays for the CPA and all the overhead.
LastZactionHero 10y ago
You could find an accountant to do your taxes. It would probably cost much less than you'd make consulting, and sometimes they can find ways to save you more money than you paid.
- nojvek 10y ago
  That's right. I always use an accountant who is a family friend. She charges about $200-$300 but manages to usually get back multiple magnitudes of that back. Plus she's always there to answer any questions about what options I have and what should be my best strategy.
TDL 10y ago
I wouldn't avoid opportunities because of the complexity of the tax system. Ask around for good accountants, they won't be as expensive as you think. Consider paying an accountant as a necessary cost of doing business.
cloudjacker 10y ago
Odd because the complications create the opportunities I pursue certain characterizations of income Ie. If I know my employer withheld too much social security tax then I'll consult because no money is withheld and not worry about paying taxes on it because it will balance out Or I'll pursue a compensation structure that can be characterized as capital gains instead of self employment income And more
jasonjei 10y ago
I actually don't believe the federal government has very little power. The Supremacy Calause, the Civil War, erosions of the 10th amendment (the US code is intense!), having a court called the "Supreme" court, regulating interstate commerce, adjudicating disputes between states, raising an army, and of course taxing citizens in any state should provide ample support to the federal government's power. And yes, they also control individual states by proxy using fund distributions as a carrot (road standards, national speed limit). They control immigration into the US; no individual state has the power to invite a foreign citizen into a US state.

by shados 10y ago

pc86 10y ago

The cost of a CPA is many orders of magnitude less than whatever "suboptimal financial decisions" you are making. Not consulting to make your taxes easier is borderline idiotic at standard 1099 developer rates. Two or three hours in a year pays for the CPA and all the overhead.

LastZactionHero 10y ago

You could find an accountant to do your taxes. It would probably cost much less than you'd make consulting, and sometimes they can find ways to save you more money than you paid.

nojvek 10y ago
That's right. I always use an accountant who is a family friend. She charges about $200-$300 but manages to usually get back multiple magnitudes of that back. Plus she's always there to answer any questions about what options I have and what should be my best strategy.

TDL 10y ago

I wouldn't avoid opportunities because of the complexity of the tax system. Ask around for good accountants, they won't be as expensive as you think. Consider paying an accountant as a necessary cost of doing business.

cloudjacker 10y ago

Odd because the complications create the opportunities I pursue certain characterizations of income Ie. If I know my employer withheld too much social security tax then I'll consult because no money is withheld and not worry about paying taxes on it because it will balance out Or I'll pursue a compensation structure that can be characterized as capital gains instead of self employment income And more

jasonjei 10y ago

I actually don't believe the federal government has very little power. The Supremacy Calause, the Civil War, erosions of the 10th amendment (the US code is intense!), having a court called the "Supreme" court, regulating interstate commerce, adjudicating disputes between states, raising an army, and of course taxing citizens in any state should provide ample support to the federal government's power. And yes, they also control individual states by proxy using fund distributions as a carrot (road standards, national speed limit). They control immigration into the US; no individual state has the power to invite a foreign citizen into a US state.