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The author is highlighting absurd examples. A partner at a law firm can easily get away with expensing 1 of their 2 luxury cars, 50% of their meals, 50% of the
by pastor_elm 8y ago
The author is highlighting absurd examples.
A partner at a law firm can easily get away with expensing 1 of their 2 luxury cars, 50% of their meals, 50% of their travel, their home computers and software, etc. Car companies even make SUVs and Crossovers that are slightly over 6000lbs so they can be deducted as 'working' trucks for white collar workers.
- mywittyname 8y agoWhen I was working as a consultant, I was able to expense most of this. The flip side is that you have to pay FICA, which is an extra 15% or so, which practically speaking, cancelled the deductions out.
- smileysteve 8y agoBut it's not; For an employee, the employer is paying 1/2 of it and the employee is paying half of it; At best, if we discount fungibility of salaries/costs for market salaries; it's an additional 7.5%
- gamblor956 8y agoWhen you're a 1099 contractor (i.e., self-employed), you pay all of FICA yourself because you are both the employee and the employee.
- smileysteve 8y agoYes, but that's only if you discount that whether the employer or employee pays for it as a fungible difference. If it wasn't setup as the employer paying for 1/2 of it, do you not think that most workers would want to be paid 7.5% more to pay it?