Signs of the Times - and a question

[BlueStreak]

Originally Posted by merrylander

At near zero interest rates it is not a buyers market?

Yeah, really. That was my first thought. What's next, businessmen expecting banks to pay them to take the money and pay it back if they feel like it?

Dave

[noonereal]

Originally Posted by whell

Seems to me that the more folks we have working and paying taxes, the better and stronger the safety net can be. On the other hand, the safety need needs to be something we can afford.

What is it we can afford?

What is it we can't afford?

[JJIII]

Awww, You're just trying to dissuade people from clicking on the links.Sorry to hear that Don. I just went back to all three links and had no trouble at all.

I do think that some of the members here will have their brain "locked up" concerning the Fair Tax though!

[whell]

Businesses are not seeing those kind of rates, particularly small businesses. Due to the rise of bad debt many small to medium size businesses don't have access to the credit they used to because the lender's sphinkters have tightened considerably. A $100K loan is in the 6 - 7% range in today's market, if they can get the loan approved. Then of course if they are successful converting the loan asset into a product, there's another 10 - 15% tax on top of any gains.

[BlueStreak]

Originally Posted by whell

Businesses are not seeing those kind of rates, particularly small businesses. Due to the rise of bad debt many small to medium size businesses don't have access to the credit they used to because the lender's sphinkters have tightened considerably. A $100K loan is in the 6 - 7% range in today's market, if they can get the loan approved. Then of course if they are successful converting the loan asset into a product, there's another 10 - 15% tax on top of any gains.

If tight sphincters mean less risky loans and thus less chance of another "bailout" then more power to the sphincter tightener. 6-7% doesn't seem all that unreasonable to me at all. So, tell me why these guys expect everyone to throw money (and unquestioning obedience) at them again..................

[finnbow]

Originally Posted by whell

Businesses are not seeing those kind of rates, particularly small businesses. Due to the rise of bad debt many small to medium size businesses don't have access to the credit they used to because the lender's sphinkters have tightened considerably. A $100K loan is in the 6 - 7% range in today's market, if they can get the loan approved. Then of course if they are successful converting the loan asset into a product, there's another 10 - 15% tax on top of any gains.

Once they've written off salaries, depreciation, interest expenses, etc., they are indeed taxed upon their profits (as they should be). I suspect you probably know some people with small businesses. I do. They are very adept in writing off every imaginable "expense" and keeping their tax burden low to nonexistent. In many instances, the small business exists solely to write off its expenses against their other profitable enterprise(s).

[whell]

Originally Posted by finnbow

Once they've written off salaries, depreciation, interest expenses, etc., they are indeed taxed upon their profits (as they should be). I suspect you probably know some people with small businesses. I do. They are very adept in writing off every imaginable "expense" and keeping their tax burden low to nonexistent. In many instances, the small business exists solely to write off its expenses against their other profitable enterprise(s).

Your point?

[d-ray657]

But the tax is only on profits, not on all of the operating revenues. Is that not correct?

Regards,

D-Ray

[BlueStreak]

Originally Posted by d-ray657

But the tax is only on profits, not on all of the operating revenues. Is that not correct?

Regards,

D-Ray

Yep. So..........

Dave

[whell]

Originally Posted by d-ray657

But the tax is only on profits, not on all of the operating revenues. Is that not correct?

Regards,

D-Ray

I'm not a tax expert, but in general terms the type of tax that is paid is based on the business's tax structure: sole proprietor, partnership, Corp, S Corp, etc. There's a tax on profits and assets. There's also local taxes to consider and those rules are many and varied.