Friday, February 25, 2011

ObamaTaxes: So Nice You'll Pay Them Twice!!

Geithner, who didn't know how to pay his own taxes a few years ago, has a new proposal for other US taxpayers:

"Pay twice!! And by the way, we have a lot more paperwork for you to fill out and maintain!!"

U.S. Treasury Secretary Timothy Geithner told the Senate Finance Committee Feb. 15 that Congress should “revisit” long- standing rules that give businesses a choice of paying taxes as a corporation or through a structure such as a partnership through which they can report business income on individual tax returns.


'S Corporations' and proprietorships are organized so that income from the business is taxed to the individual(s) who own the business. The rate is about the same, ~35% for individual and corporate tax.

What Geithner is proposing, however, is to force S Corps and proprietorships to:

1) Incorporate, and then
2) Pay corporate income taxes on the business' income AND
3) Pay individual income taxes on earnings taken by the owner(s).

Incorporation is a pain in the.....umnnnhhhhh.....patoot; there's plenty of paperwork which must be completed (and, of course, maintained every year). States, of course, have their OWN paperwork requirements for corporations, too--which calls for another layer of administrative time.

To people such as Geithner, "adding paperwork" is no big deal. First of all, HE won't do the paperwork; YOU will. Secondly, cluck-bureaucrats such as Timmy (and the ConLaw Perfessor) think that Paperwork Is Life.

But then, they've never sold, or manufactured, a damn thing--except paperwork.

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