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>Income is cash-in-hand, cash for advertising, mortgages, food, operating expenses. Income is precious -- equity not so much. Advertising and operating expense
by briancooley 18y ago
>Income is cash-in-hand, cash for advertising, mortgages, food, operating expenses. Income is precious -- equity not so much.
Advertising and operating expenses offset revenues. A higher tax on profit doesn't reduce your ability to navigate any minefield on the way up unless your tax attorney is incompetent.
- DanielBMarkham 18y agoI hear what you say and agree, yet from this end it feels like we're playing pointless semantic games. If I have 100K in income as a business, and I have to pay my employees an extra 20K in salary just to make up for extra taxes, that comes out of my bottom line -- money that could go elsewhere. The categorization of the expense doesn't make it magically go away. People still have to eat. 200K a year, if I remember correctly, is about the average wage for working founders in a startup businesses that are funded and on the way to profitability.
- cstejerean 18y agoIt might depend on where you live but I think 200k as salary for a founder in a company that is not yet profitable is ridiculously high.
- DanielBMarkham 18y agoRecent discussion on this topic: http://news.ycombinator.com/item?id=322987 http://news.ycombinator.com/item?id=322987
- cstejerean 18y agoI'm not saying that you shouldn't pay yourself and try to live off Ramen the entire time, just that 200k is pushing it (although it depends on what people did before they started their startup and what kind of lifestyle they need to support). Edit: now that I re-read that article I think we might be talking about different things. I don't think it's common for the founders to pay themselves that much, although I can imagine having to pay that much for executives that you hire early on.
- briancooley 18y agoIf I have 100K in income as a business, and I have to pay my employees an extra 20K in salary just to make up for extra taxes, that comes out of my bottom line According to nonpartisan TPC estimates, a single earner, no kids, making $200K would receive a $2900 tax break under Obama's plan. http://www.taxpolicycenter.org/numbers/displayatab.cfm?Docid=1975&DocTypeID=7 http://www.taxpolicycenter.org/numbers/displayatab.cfm?Docid...