I was reading the New York Times this morning and noticed a headline indicating the Obama is going to suggest a 28% standard tax rate for Corporations instead of the current 35% (2011). To me, this would be great! I am the sole owner of a corporation and pay out the wazoo in taxes. I pay the 35% corporate tax rate and then pay personal taxes on the dollar amount that I distribute to myself at the end of the year. Essentially, I feel like I am getting double taxed.
So, as I am reading this article from a liberal standpoint, I notice the imagery the media is using to depict Corporate America. It is a factory with a foremen walking through a designated walkway between machines and factory workers. Sure, it is a great choice of stock imagery because it is a factory! Everyone knows factories are corporations, right? Well, I say wrong.
I am not a giant corporation, I am just one person. I have a team that works with me, but they all work as 1099 contractors but I am still in the 35% tax bracket just like the one in the factory above.
Well, how are we supposed to handle taxes for corporations like mine? Am I supposed to get taxed the same way giant corporations are being taxed? I don’t get it. Tax should be based on income, not how you structure your business.