OnePercenter
Gold Member
- Apr 10, 2013
- 23,667
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- Thread starter
- #181
Sure you did.
So let me help you understand. Your revenue is $40.00 for a lawn. Your employees makes $23.50/hr + $3.00/hr for benefits + 32% (comp, employers side of FICA, local taxes) = $34.02.
Your taxes on the $40.00 is $10.00
Under my plan the $10.00 tax is deductible 1 to 1 and the balance $24.02 is 100% subsidized leaving an employee net cost of $10.00 and a net employer profit of $30.00.
How is a tax, tax deductible?
Are you stoned?
leaving an employee net cost of $10.00 and a net employer profit of $30.00
Now $40 in revenue only gives the employee $10 while the employer gets $30 and the government gets $0 in taxes?
Let's see:
Revenue $40.00
Tax - $10.00
Employee cost - $34.02
Tax off-set + $10.00
Subsidy + $24.02
= $30.00 net to employer.
The government doesn't get $0, the employee is making $23.50/hr and is spending the money.