Forevryoung
DIS Veteran
- Joined
- Jan 30, 2005
- Messages
- 3,123
Perhaps I'm not making myself clear. As I said, we can easily offset the 4% increase by decreasing our charitable contributions. (And I appreciate you saying that you understand why this particular tax increase can be easily justified as charitable giving.) My bigger concern is some of the other tax changes that have been bandied about. If the SS cap is raised or the 401k deductibility removes or if a higher tax increase is passed if Obama wins, etc., we are dealing with a much bigger tax increase that we are discussing here. So, for now, we will be in a holding pattern. No new employee hires, etc. Our business is highly recession-proof so we could grow. But it is conceivable that changes could be made that we would be sending more to the government than we would be able to keep at the highest tax rate. We aren't in the business of funding the government. Plus, we live very conservatively, so deciding that the additional time we would have due to scaling back the business vs. working hard for a bit of additional money in our pocket can be made without regard to expenses.![]()
I guess the bottom line is that you trust Obama to do what he says. I don't. It wouldn't surprise me at all if once in office, he proposes tax increases much higher than he is admitting now.
My parents are in a similar position (except we live on Long Island where a dollar doesn't go as far and we have crazy other taxes).
My mom has agreed that if taxes are raised much more, my father will work shorter hours.
Currently, for every $1 that my father makes, $0.45 of it goes to taxes. There comes a point in time were working for that dollar doesn't make sense when you factor in overhead (approximately 55% of his business's income).