Quote:
Originally Posted by PsychoLoco
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.
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What's not fair? This is why Sole Proprietorships are called pass through taxation. You get to have all your income taxed at a lower % than if you were working for a corporation, deduct expenses, you even get to write off losses, etc. You have it good. SSI and Medicare are costs to the employer, correct. Costs that can be adjusted to ARRIVE at your AGI which reduces the amount of your income that may be taxed. That's a small price to pay for all the benefits of a sole proprietorship.
Maybe I am missing your point. What is the logic behind you saying this is the equivalent of making employees of a corporation do all that? You are running your own business, employees of a corporation are merely contributing members to a business. Employees of a corporation don't see profit and capital gains, you do. Employees of a corporation don't own the building or the computers they are doing work on, you do. Whoever owns the equipment amortizes the depreciation. Whoever is getting capital gains is also experiencing the expenses related to it. Employees of a corporation are getting paid to go into work, perform some duties, and then bounce. We're performing a service, not being a functioning sole proprietorship within a corporation.