Small Businesses Brace for Tax Battle

[napi21]

Gail Johnson doesn't think of herself as wealthy. The former pediatric nurse has spent 20 years building a chain of preschools and after-school programs that accommodate sick children so working parents can keep their jobs.

But, like most small-business owners, Johnson reports her profit on her personal tax return. In a typical year, she and her husband make more than $500,000, according to her accountant, a figure that throws them squarely into the ranks of the richest Americans -- and makes them a prime target for the Obama administration's tax policy.


(snip)


Johnson, with her company, falls into both categories. If Obama's tax plans are enacted, her accountant estimates that her federal tax bill -- typically, around $120,000 a year -- would rise by at least $23,000, a 19 percent increase.

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/26/AR2009042602838.html?wpisrc=newsletter&wpisrc=newsletter&wpisrc=newsletter

Does that make sense to you? 19% I wonder if the newspaper & the accountant isn't playing with the #'s and the words? I noticed the use of the words "income" and "profit" as interchangable, and THEY ARE NOT!

Obviously I don't know any more about this individual than is in the paper, but I would suggest that she incorporate and file a business return, and take a salary from that business.

[Bluenorthwest]

1. You know, very few of the wealthy

think of themselves as wealthy. Such a comment is just silly. I have heard that line out of people with tens of millions of dollars. They are comparing themselves to the 'real rich' who have hundreds of millions. Meaningless.