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Making up a shortfall? You're under the impression that if there were better enforcement of shady S-Corps there would suddenly be a law lowering taxes on the o
by grandalf 16y ago
Making up a shortfall? You're under the impression that if there were better enforcement of shady S-Corps there would suddenly be a law lowering taxes on the other types of business orgs?
- tptacek 16y agoI'm saying that there is some function mapping revenue to entitlement obligations, but I'm not interested whatsoever in arguing the merits, accuracy, or impact of that function. Most "small businesses" are not S Corporations. An even smaller number are S Corporations that have been jiggered to allow owners to avoid FICA. And only fraction of the people employed by small businesses could ever take advantage of the loophole, since it's effectively usable only by owners.
- grandalf 16y agoWhy should founders pay payroll tax on the firm's entire gross income up to the cap? That does not make any sense to me, since the founder already pays self-employment tax on whatever amount he/she takes as salary.