Signs of the Times - and a question

[bobabode]

Originally Posted by whell

FUTA Tax - typically 0.8% on all wages up to $7000 per year
SUI tax - Typically for a new business its about 2.7%, but the wage base varies by state. In New Jersey, for example, a new business might pay 3.3% on all wages up to $30300 per year.
FICA Tax - 6.2% on all wages up to the annual limit. Wage base typically rises each year. 2012: $110,100
Medicare Tax - 1.45% on all wages

You are responding to the wrong person Whell. I was sarcastically commenting on the term "human capital" by likening it to slavery. Sheesh.

[whell]

Originally Posted by finnbow

Explain how a firm is required to pay tax acquired capital in the form of money (in the form of a business loan). Actually, the interest on that loan becomes a deductible item, as does the cost of Pete's home office, computer, Internet service, car lease, and annual junket to Miami to visit suppliers. In the end, he can actually show a loss, despite earning $.25 on each item, and write that loss off against his profits from his his or his wife's other income.

In most cases a business loan is not considered taxable income. The exception is if the loan is part of a negotiation with a creditor to reduce overall debt. In that scenario, any debt that is excused must be taxed as revenue.

However, loans are not the only way to raise capital. If a business converts revenue into capital by purchasing a truck. The business had to pay taxes on the revenue when it was generated. It then reinvested the capital in the businesses by purchasing the truck. Yes, the reinvestment may be "written off" as a business expense, but certainly no where near a 1 - 1 ratio of the taxes paid on the funds (capital) reinvested to purchase the truck and is spread out over subsequent tax years as a depreciation expense. Also, the expense can only a written off against any profits that a business makes. If the business is operating at a loss in any year, they would not be able to write off the expense of the truck.

But now we're getting WAY off topic of my original post.

[whell]

Originally Posted by bobabode

You are responding to the wrong person Whell. I was sarcastically commenting on the term "human capital" by likening it to slavery. Sheesh.

No need to get flustered. Its actually a fairly common term used to help quantify a business's investment in its employees.

[whell]

You guys of the left should LOVE this, but I think it illustrates my argument better than I'm able to:

http://www.economist.com/economics/b...al-income-zero

Note that the author bows to the idea of a progressive income tax while rejecting the notion of taxes on capital.

[finnbow]

Originally Posted by whell

You guys of the left should LOVE this, but I think it illustrates my argument better than I'm able to:

http://www.economist.com/economics/b...al-income-zero

Note that the author bows to the idea of a progressive income tax while rejecting the notion of taxes on capital.

His article can only be understood in the context of a complete overhaul of the tax system, as is evidenced in his last 2-3 paragraphs. As it is, this is an article that should be considered "navel-gazing" by someone trying to rationalize the reduction of his own taxes.

[piece-itpete]

Originally Posted by ebacon

You still haven't thought it through. Your thoughts are a train wreck. Writing is nature's way of letting you know how sloppy your thoughts are.

First off you need to define w.......system would work a lot better if laborers focused their political energy on their rational self interest. Upper management has shitpots of money to buy votes and does not need workers political help.

My sloppy writing says a COST is a COST. In one short sentance to boot

It pays to consider that the next time there's a mention of jobs going overseas.

Pete

[ebacon]

Originally Posted by piece-itpete

My sloppy writing says a COST is a COST. In one short sentance to boot

It pays to consider that the next time there's a mention of jobs going overseas.

Pete

One more try.

Where does the COST come from? Yelling doesn't make it any more understandable.

[piece-itpete]

Sorry I'll be more quiet

cost

past participle, past tense of cost

Verb:

(of an object or an action) Require the payment of (a specified sum of money) before it can be acquired or done.


Noun:

An amount that has to be paid or spent to buy or obtain something.


Synonyms:
verb. be
noun. price - charge - expense - value - worth - expenditure


From Google. Hope it helps!

Pete

[piece-itpete]

Oh wait. Everything a company has to pay out per unit is part of the cost. Can be materials, manpower, equipment, then a portion of fixed costs like buildings, accountants, taxes, insurance...

Pete

[whell]

Originally Posted by finnbow

His article can only be understood in the context of a complete overhaul of the tax system, as is evidenced in his last 2-3 paragraphs. As it is, this is an article that should be considered "navel-gazing" by someone trying to rationalize the reduction of his own taxes.

I have no idea where that perspective comes from. The guy's a college prof so he's probably in the $200k range plus or minus, unless he's published. Certainly not in the same league as the "corporate rich" who are typically reviled in this forum.