Think your computer tech is a con-artist at $75/hour. Current Federal business tax rate for business’s who make over $100,000 per year but not more than $399,999 is 39% this is the Bush reduced tax cut rate. This is $29.25 for your federal government PER HOUR A BUSINESS BILLS.
Leaving only $45.75 per hour charged not worked for the business owner.
My state of New Mexico Business Tax Rate for Business who earn over $500,000 is 4.8%. This is $3.60
Leaving only $42.15 per hour charged not worked.
$42.15 per hour is what we earn BEFORE personal taxation.
Federal Personal Income tax rate is 36% of $42.15 This is and additional $15.17 per hour billed for the government because for some silly reason business owners may actually WANT to take some money home. Now the FEDERAL GOVERNMENT is making $44.42 for every hour I bill at $75.00
Leaving only $26.97 per hour billed not per hour worked.
New Mexico personal income tax rate is 4.9% this is $2.06
Leaving only $24.91 per hour billed not per hour worked.
Self Employment social Security tax rate (also known as the self-employment tax) 13% This is $5.47
Leaving only $19.44 per hour billed not per hour worked.
Medicare tax rate on self employed is 2.9% (only 1.4% if you are not self employed) This is $1.22
Leaving only $18.21 per hour billed not per hour worked.
Average time to clean a virus from a computer takes 9 hours.
This is equals $2.02 per hour WORKED not billed.
We pay 100% of our healthcare out of our $2.02 per hour.
Sales tax equals 7.187% This is $5.39 For a total of $80.39
State and local government are making $6.91 for every hour I work for a total of $62.18 for every hour I bill.
Taxing a business doesn’t mean you didn’t pay the taxes. Please keep in mind this is simplified and doesn’t show any actual business expenses we incur, rent, power, gas, consumables damage and theft. Licensing or time spent educating ourselves to be a proper repair facility all of those expenses come from my greedy $2.02 per hour.
The government actually thinks is deserves $62 for $75 I bill. After all I do so little in comparison to them I should only earn $13 I am evil greedy and handing $100,000’s of dollars annually.