Quote:
Originally Posted by Leentron3030
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.
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That's not necessarily a fair assumption. Yes, I get additional deductions, but I actually have to pay for those deductions or use my own assets. What you are saying is the equivalent of me telling anyone that works at a company that they need to take the cost of their healthcare paid by the company, depreciation on their work computer and office facilities, the percentage of electricity they use at the office, and all of the coffee they get at the office, add it all up and determine their gross income. I guess just so they can feel better about how much they are actually getting from an employer. SSI and Medicare are costs to the employer, just like all the other deductions.