Quote Originally Posted by alpine_xj
This is what I think this is getting at, but I could be wrong. Basically, I'll use a business as an example, and it pulls in 350k before expenses. That is what would be measured, not whatever the owner actually takes home once he/she pays for all of their expenses for that year. So if the owner only takes home 200k, they will be taxed as if they make 350k. Honestly I hope I'm wrong, that would be fucked up.
i see what you're saying, but you can't use that example for ALL businesses.

another thing to take into consideration is the actual definitions of GROSS and NET income. net income is EVERYTHING AFTER TAXES, expenses, etc. that's why obama supporters already ASSUME his tax policy is based off of gross income anyhow....that's how it ALREADY WORKS. that's another reason why we're allowed "tax deductions."

as stated before, not all businesses use business revenue as personal income tax...it depends on whether you file as an S-corp or LLC. when filing under an S-corp, your business income is the same as your personal income. if you file under an LLC. then you file your business and income taxes separately.

lastly, the increase is on everything over $250k. so let's say you make $255k...then the increase in taxes is on $5k...not the entire amount. taxes already work this way. i don't remember the exact percentages, but let's use 15% and 36% in a $255k income bracket. you'd get taxed 15% on everything up to $250k...and anything over that gets taxed 36% (you pay an extra 36% of the remaining $5k). what obama wants to increase is that 36% to 39%. this is what i THINK FOX is trying to prove/dis-credit. i think they're trying to say that once you get above that $250k range...then EVERYTHING is taxed more...not just anything over $250k. if that's their point, then they're wrong...