Quote:
Originally Posted by PsychoLoco
Actually, I already am asked to pay more in taxes. As a sole-proprietor, I have to pay the employee's portion of Social Security and Medicare (just like every worker in the U.S.), but then I also get to pay it again since I employ myself.
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Your self employed social security and medicare tax is deducted at 50% to arrive at AGI. Adjustments to arrive at AGI are great because they reduce your taxable income. Along with the fact that you can also deduct all of your health insurance premiums for you and your dependents as well. As well as your business expenses.
Also, you are only paying 15.3% on your profits/income. That's basically the same tax rate as those making 35,000 a year and less. Those people also don't get all the deductions that you get though.