Changing Business Plans for Growth
The McCain/Palin Stumble-Bumble team is out campaigning busily with just one week left until the election. True to their usual poorly-thought-out ways, they’re attacking Obama’s tax policy, which would give tax breaks to 95% of Americans. Yes, somehow this is socialism (you know, helping lots of people), rather than utilitarianism. Ah well, McCain was in a prison camp when they taught political philosophy, and Palin missed that course while taking 6 years at 5 different schools to get her bachelor’s degree.
One of their toughest criticisms is that Obama would somehow hurt small business by raising taxes on businesses that make over $250,000 a year. And while it’s true that taxes for those businesses earning over $250,000 in taxable income would go up, the plan does a lot more for the economy than anything McCain could even imagine. He’s too busy thinking about our nation of whiners, rather than proposing policies that will actually help people.
What if you are a small business owner and your earnings are right on the bubble? Maybe you had $240,000 in taxable earnings last year and are going to surpass that this year. First, congratulations for growing your business even in tough economic times. Second, there’s hope for you. All you need to do is turn some of your taxable income into deductions. Remember, legitimate business expenses are deductible.
Maybe you’re Frances that Pipe Fitter, got a lot of great projects, and have high, high earnings. Now is the perfect time to invest in new equipment for your business. It will help you make even more money, as well as stimulate the economy at the same time. Or maybe you’re Julian the Tailor, with booming profits thanks to your lucrative “pocketbook shrinking” service (less money means people don’t need as large wallets!). Now is the perfect time to hire someone new. You can then deduct that person’s salary from your income.
It’s possible that your business may be unincorporated. Now is the perfect time to form an LLC! This will allow you to separate your own salary from the earnings of your business. It will also put you in an ideal position to put money back into your business, grow the economy, and suffer no financial hardships.
Obama’s plan is based on creating economic growth, not on trickle down philosophies that take years and years to work (if they do at all). Now it’s just up to business owners to see how Obama’s plan, unlike McCain’s, will create long-term and short-term growth, rather than gambling our future on a sketchy economic philosophy that, like communism, works best on paper.
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