Originally Posted by Drunken.Broncoholic
Wrong. I'm downsizing my business and laying off employees. So do you think it's affected them too? What about all those employees who will see less hours or a pink slip? None of them make 450,000 yet they will be directly affected
I have a hard time believing that such a small tax increase on income above $400,000 could so radically impact a business. Maybe you don't understand what these changes really mean? Let's do an example (oversimplified):
Let's say your taxable income was $500,000 last year (2012). Your tax would be $151,762 for an effective rate of 30.35%.
Let's say your taxable income will be $500,000 this year (2013). Your tax would be $155,763 for an effective rate of 31.15%.
So your tax increased $4,001, and your effective rate 0.80%.
How many "pink slips" is $4,001 causing at your business?