Any Accountants Out there?

[EmeraldCityGrl]

I've been following a thread on another board and was impressed with this authors explanation
of the impact of Obama's Tax plan vs. McCain's on small business owners. Sounds pretty cut and dry,
Obama's plan is superior.

"and while I'm no "expert" I do maintain tax records for several dozen small business owners..filing as Corps S-Corps Soles and Partnerships.

The basic cutoff is 250k married filing jointly line 37 1040 personal return. Any K-1 or 1099 or W2 or SSA or railroad benefits or pension benefits Cap gains all gets counted above that line and netted to AGI You either hit it or you don't.

If you do...then ordinary tax rats as exist presently apply to the first 250k then the new rates
I think the thing to remember is that Schedule C 1040 sole prop income is NET of all appropriate expenses allowable. No one that I know or file for reports a gross income number WITHOUT appropriate expense offsets. So it's the net amount that moves over to line 12 1040 above the AGI line 37 and becomes a part of that AGI calculation. In fact, I'd go so far as to say tat the majority of the sole props I file for report a line 12 LOSS not a profit amount. Almost all the small business I know run at a book and a tax loss level so imv, it's a NON - ISSUE as far as sole props go.

Now the Sub-S or C-Corps or Partnerships that are small businesses ... are not directly affected at all by the OBama plan. Those rates may be DECREASED separately from the personal rates, and tax credits allowable may be INCREASED to allow small corps to expand and/or survive...under the OBama Plan.

Now I do know, that the McCain plan provides for a first time ever taxability feature for EMPLOYEE BENEFITS paid for by your employer. That's to offset the tax health insurance credit that is given but goes to an Insurance CO. not the employee participant. Never in history has a tax been directly applied to employee benefits. For small employers who currently cover their staff for health benefits - I have heard it said directly to me that they will terminate their plans and let all employees go out on their own to find/secure coverage. I guarantee you that many employees everywhere will loss present paid for health coverage.

Frankly I see most all my small business clients will do very well in this supper tight economy under the OBama plan; but not so much under the McCain "non-plan" which is basically a tax cut for the top quartile of earners and large and profitable employer corporations wit a save of a 5k credit for health coverage to people who have it but couldn't afford to secure it on their own. Further the McCain "cuts" only go to high earners 150k and above, not the majority of low wage earners 100k and below.

The McCain Camp has mislead everyone on this issue..because people hear only one phrase thinking that everyone gets one and all the rest escapes them entirely. People just don't get the "shell game" of republican political theory.

Further McCain makes some offhand remarks about cutting back on both Medicare and on SSA benefits in order to balance his budget.

So yes, I have a vested interest in sending John McCain back to the Senate...with hat in hand apologizing to all the people he lied to over this campaign.

I can't wait for Nov 4th.