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Old 01-04-2013, 09:46 PM   #154
cutthemdown
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Join Date: Mar 2006
Location: Long Beach
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Quote:
Originally Posted by TonyR View Post
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?
what if the business also getting hit with Obamacare cost increases? Also capital gains went up 5% on that same bracket so it all adds up.
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