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Do republicans in congress need a good CPA?
My family has had a family business for just over fifty years. we have 22 employees.
Our CPA always deducts the employee wages as a Salary Expense from our gross revenue,just like cost of materials ...he says it is legal
Do republicans realize this? They seem to think that if they raise taxes on businesses that we will have to fire people. Our CPA says that we are only taxes on profits after expenses. Is our CPA a crook?
@joe in texas " really? i don't know anything about running a small business?
First of all we have no dead weight at our business , we need all the workers we have, because ,just like Wal Mart , we have as many employees as we believe we need and not one more. If someone were to resign tomorrow we would have the word out the next day looking for a replacement.
Second , raising the business tax does not mean business's are forced to 'make up the difference' by cutting expenses.
But at least you added some depth to the republican slogan that raising taxes on the job creators (thats me) will result in massive layoffs. They give no explanation for such a bold pronouncment.
9 Answers
- 10 years agoFavorite Answer
Congress could use a good CPA. A good CPA would also tell them that consuming ever increasing portions of the nations wealth will have a deleterious effect on productivity, output, growth and revenue. Taxes need to be raised only after spending cuts are made.
If I spend more than I make, I reexamine my budget. If, after cutting what I can, I am still coming up short, I get a 2nd job. The 2nd job is not my first option.
Perhaps you can tell us where you got your Business Degree? I received mine from Chaminade University. One of the things you learn in first year economics is that corporate taxes are nothing more than an expense that is passed on to the consumer of the goods or services being offered.
- Anonymous10 years ago
Your question is misleading.
If your family business makes less profit after taxes then they will have to cut expenses in order to maintain profit.
That means laying some of your 22 employees off.
I certainly hope for your family's sake you are not in any way involved in this business because you don't understand a thing about running a small business.
- Anonymous10 years ago
If the tax you pay on those profits goes up there is less incentive for you to take the risks involved in expanding your business - going to 30 employees instead of 22. It's basic economics - and human nature - that if you decrease the reward people are less willing to take risks.
- imaxkrLv 610 years ago
If you pay additional taxes out of your profits and your profits no longer meet your personal expenses (since your profits are your wages) then you either sell your house (since your income dropped) raise the prices of the goods and services you provide ( you may lose customers further eroding revenue) or cut expenses.( letting employees go)
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- ?Lv 610 years ago
No. Those fascists NEED to be thrown out of the Capital Building on their fat a***s. A more worthless group of people I have never seen.
- ?Lv 510 years ago
Yes.
Source(s): They should have more income first to cover the bills that are already due and the anticipated necessary expenses. You don't get a second job after your bills are overdue, but try to anticipate the expenses, just like you don't take a lower paying job if it doesn't pay the bills (unless you are forced to). - You Need Me!Lv 710 years ago
Did your CPA advise you against spending 10 times more than what you make?
