3 ms·

I think that's a logical error; I don't care about how much the contractor makes after tax, I only care what the cost to me is. After all, if the contractor ha

• madsbuch 3y ago
  On the contrary: My initial statement had nothing to do with price negotiation. All I was trying to assert was how the tax implications are when you do something yourself vs. when you subcontract. Do it yourself: Miss out on that hours worth of salary Subcontract: 2 times tax is paid. Obviously this has implications on negotiation. This is exactly the reason why services are considered very expensive in the Nordics (as in 80USD to get your hair cut). Note that this needs to be compared with a company getting their stuff fixed. Their contractor costs are fully deducted from their income.
  • Shaanie 3y ago
    The contractors tax situation is irrelevant to you. The only thing that matters is income vs expenditure. Or in this situation, "how many hours do I have to work to pay the contractor's hourly fee?" and "how much faster is the contractor?". The tax stuff are just details around this. In my example, a contractor who's twice as fast needs to cost $76 or less per hour . Thrice as fast is $114 or less. You're right in principle though, just not on that calculation. In Sweden we have tax deductions for private citizens exactly to combat this issue: up to a certain amount per year can be deducted from your income, just like a company can, for certain services (such as cleaning or house repairs).