How to Jumpstart the Economy - Tax Free Small Businesses

Re:How to Jumpstart the Economy - Tax Free Small Businesses by reitzensteinm on Monday July 28, 2008 @07:50PM (#259820)

I don't think that there would be any additional advantage to doing that under the model Cuban is proposing. Business owners would still pay tax on their personal income. The actual dollar amount of tax paid by a one person company that pays all profits to its owner/employee would be the same with or without small business taxes, since the business always has a profit of 0.

Business owners may prefer contractors for various reasons still, but this wouldn't add to it. Did business owners in Romania also get a break on the money paid out from the small business as personal income?

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Re:How to Jumpstart the Economy - Tax Free Small Businesses by moocha on Tuesday July 29, 2008 @01:03PM (#260779)

Indirectly, yes, since they didn't have to pay the social security contributions affixed to salaried positions - and since those contributions are considerable (depending on the job function, to the order of 30% up to 80% of the pre-tax wage) it was easier to do this than to avoid paying them at all (also a common practice since tax collection, alas, moves incredibly slow...)

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Re:How to Jumpstart the Economy - Tax Free Small Businesses by RobertL on Monday July 28, 2008 @10:37PM (#259943)

Good point reit. Just eliminating the double taxation thing could be huge.

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