Speaking of taxes, I'm a small business owner. My small business is small based on the number of employees we have. But the type of product and our customer base, makes the business look very large when you look at the financials. My brother and I, who both own the business, have always taken good care of our employees. Our business is a sub-chapter S corporation. Now both my brother and I do live comfortable lives financially because of the business we built these past 30 years.... no doubt. We go out of our way to make sure our people are taken care of as well. The employee who has the longest tenure with the company is black. He's been with us from almost day one. He's a great employee. But that's beside my point.
My quarterly tax payment to the state and fed, just a single quarterly mind you, is more than half of the purchase price of the first new home my wife and I bought in 1990. That's just my single quarterly, not including my brother's which is the same amount. That first house was priced at $96,000.00. The April tax bill amount is staggering.
I just posted that to put an end to the thought that small businesses don't get taxed as much as others. Most small businesses are S-Corporations. The shareholder/owners get taxed personally on the revenue generated by the business, regardless of whether they take the money out of the business or reinvest it back into the business. Some may argue, "Well look at the deductions you get to take on capital expenditures." My answer to that is, it takes major cashflow to handle a large enough capital expenditure to make a difference, and if the cashflow isn't there, then you go into major debt. That's not a good thing for a small business.
Some of my wealth was acquired through some forethought (aka saavy financial decisions) outside of the business. I started heavily investing in my kid's futures before they were born, for example. I have been ever since my daughter, who is my first of two, was born in 1994. I continued that with my son who was born in 2000. The property my large house sits on, I purchased in 1995. I paid off the property prior to building and moving into the house in 2005. The downpayment on this property I purchased in 1995 came from a CD that I had from some smart loans that I got against the original CD on some motorcycle purchases that held or raised in value before I sold them.
However, my point is, small businesses pay more than their fair share. My apologies for rambling on.
