(800) 853-2651
SHOP NOW

OT . Cost of business

A

Anonymous-0

Well-known Member
Okay ,say my business makes and sells a product. I am now told my taxes are going to increase by say ,,,$100,000 a year . What do I do to keep the cost of my product down ? Cut bennifits, cut wages, give up my salary ? Just bite the bullet , and pass the increase on to the price of my product ? What would you do ?
Please no flaming ,yelling, mentioning political parties ,or bible quotes .
 
To be dead serious with you,I've ben pondering that but was afraid to post something that might get political. If you're asking for the reason that I think you are,I'm more afraid of the increase in regulation because of various causes. I'd like to hear what everybody else has to say,so I hope it doesn't get political and taken down so that everybody can have their say on the actual question.
As for me,I'm getting near enough retirement age,and too old and tired to put up with all the crap that might be coming down the road. I'm seriously thinking...40 acres in the Ozarks or Apalachians,grow a garden,cut some fire wood,do a little fishing. In other words,quit.
 
I asked for answers ,,not replies that have no bearing on the question . Hopefully it's still possible to get a question answered on this board without it turning into a nonsense, bashing thread .
 
first
you are asking the wrong question. What do I do to keep the cost of my product down ?

the question should be, what do have to do to decrease my taxes?

second:
because we don't know any of the costs associated with your business, you'll need to either refer to this tax increase in terms of a percentage or If you use dollar terms you will then need to supply the dollar terms of all other aspects of your business.

third
I run several companies. they are all taxed based on profit. If I want to lower the amount of tax the company pays I simply lower the amount of profit by increasing expenses.

forth
if you taxes are going to increase by $100,000 then simply increase your deductable expenses by $100,000/TaxRate(20%???)= $500,000
 
No mater what you try to do it will have to end up in the price of your product sooner or later. If not you will have to take less for your portion and maybe even your employees portion. The latter not setting to well to keep employees. Your takeing less will end up making you feel like not working harder and hiring more people. Then it will still end up in an increase in your product price.
In the end you pass the costs on, what ever they may be, or someone else will be doing what you have been doing at the higher sale price you didn't decide to pass on.
 
if you would be faced with that kind of tax increase,than you prob make the income/profit to match that # by five.
so whats the problem.
wish i had that situation. i would be selling out,invest the profit and go fishing.in other words,go f the dog.
 
Just like somebody else mentioned - Taxes are based on profit. Profit is generated by inputs...as long as your input receipts show an increase that equals the profits everything should fall in place.

I will not offer anything illegal or dishonest as there are other methods to increasing the inputs costs - but those are best handled by an experienced accountant.
 
You gotta either cut your profit or cut your expenses. You can cut expenses by increasing your employee's productivity, e.g. if you have a ditch digging business, you can replace a bunch of guys using shovels with one guy running a backhoe.
 
That is an over simplication If your competitor raises his price and you don't (assuming quality is the same) then your sales should go up. Your margin will be less but profits should rise or stay the same.
 
Here in Ohio we also have a tax that we get accessed for the privilege of providing jobs based on gross sales.

All of this just makes you love to take less for your time and investment. Of course it would make it to simple to raise prices.
 
If it can't be understood in simple terms then it will fly over the heads in detail. Timing might be in order but added costs will be added to your prices or you will have no need for prices sometime in the future.

If you are working for wages and payday rolls around and the pay check is not there I would guess you would think long and hard about going back to work the next week.

What would make the owner with a large investment think any different.
 
depending on your product you can do like the cereal companies and sell smaller packages for the same price.
 
Overly simplistic, shows your lack of understanding. Who would buy a company that faced that kind of tax burden? Who's to say the company was profitable in the first place? So you would just divest yourself of all your equipment, buildings, vehicles, and stock, and go fishing? And forget about the people you employed, right?

Seems all you're concerned about is you. Just like people who want something for nothing from the government. And those who are envious of others that have worked hard and succeeded.

Taking money from those who produce the good and services we all want and need will not help you, or anyone, one bit.

You cannot tax your way out of a bad economy. It is impossible. The people who are able to create more jobs will no do so if the government removes the encentive to do so. And raising the capital gains tax keeps the other people, the ones who have money to invest in new companies or ideas from doing so.

This is what is meant by "Trickle Down Economics". If you remove the heavy tax burden from businesses, and provide incentive for investors, they will grow the economony. More jobs, better jobs, for everyone. If you do the opposite, jobs will dry up, businesses will close. Pretty simple.

If you think it will make you feel good to see the "rich guys' getting stuck, you're wrong. It won't help you at all, and in reality will hurt many people, and the country. Plus, taking pleasure in other people's pain is wrong.
 
It depends on the type of tax. If it a tax on profit, a good CPA will help minimize the burden. Tax on profit is a tax that is nice to have because it means you have done well managing your business, it's still frustrating because you hate to give up your hard earned money.

An increase in payroll tax, licenses/ fees and other somewhat hidden taxes are another story. Your competitors will have the same increases, which helps keep the playing field level. You can cut any excess overhead, increase productivity, increase pricing, or fold. If your overhead is already lean, pricing or productivity (better systems, equipment, training, or sometimes replacing your less productive employees) has to increase accordingly. Sometimes a combination of the above must be done. One other option is to sell harder to spread your fixed costs over more gross sales (diluting the overhead).

One other tax that has been mentioned in this campaign. There was talk of cutting capital gains tax in the answer to Joe the Plumber. In that example, Joe was told if he increased his sales from $250,000 to I think it was $500,000, one candidate was going to cut captial gains tax. Capital gains would not really be relevant in that discussion unless Joe was going to sell the business, or sell some assets that the business had accumulated, for more that his cost of aquiring the assests, minus his depreciation. The candidate tried to pull a fast one on Joe.
 
bryan, without knowing the particulars of your business, and why your tax liability has increased so much, the first thing i would do is look to your accountant, i have a cpa handle my businesses, along with an attorney. they will advise you as to how best to proceed. you do not want to enter a grey area of tax law and generate an irs audit. it is possible there are deductions available, or possibly investment in research and development, advertising, capital improvements, ect that decrease you profit on paper to lessen your tax liability.
 
Mine tax liability has not gone up yet . I really appriciate all the great replies . I am looking at expanding my business,,,and kinda playing the " what if " game along the way . Once again Thanks
 
Last weekend we were in Toledo, the area where "Joe the plumber" is. In a restaurant I picked up a newspaper. There was an article about Joe and business tax. It said for a profit of $250,000 right now the income tax rate is 36% and under external_link's plan it would supposedly go to 39%. Kind of surprising there isn't more difference for all the hoopala. Thirty-six percent is too much, especially considering all the other taxes on top of that one. However, I doubt if many businesses turn in a profit that high after all the expenses. With that much profit it would be time to buy a new work van and every other usable thing.
 
A lot depends on what taxes they are. If its a net profits tax increase of 10 percent then the business is turning, ballpark, in the neighborhood of a million a year in net profits. Thats after all expenses, wages (including yours if its incorporated) etc. The net effect is it will reduce the dividend to investors or the owner if the owner owns all the stock. Cutting costs, or holding costs the same and increasing income both will net more, taxible, income to the business. Im assuming a corporate structure here since I'd be terrified to be netting a million or more out of a business and being personally liable.

If its some other tax those numbers may not work but thats what accountants are for. There are a lot of methods to reduce tax liability which are all perfectly legal.

On a smaller and sole proprieter scale I set pricing based on what I expect to net. If I dont make that I can increase sales, decrease costs, make do with less, or do something else.
 
Great response, chewin somebody out and a political statement. Stay on topic.
So what's the difference between sellin out and if the owner dies, retires, sells to somebody else, or etc, the owner is not responsible for cradle to grave jobs, that would be Japan.
 
You missed the 15.30% FICA taxes and Medicare Tax.

The Ohio CAT Tax.

Ohio Income Tax 6.555%

Local School Distric Income Tax in Ohio 1%

Local Income Taxes: 2.25% (Toledo)

For a grand total of 64.105% going to the Government.

So yes that 3% more represents an 8% loss of what he gets to keep.

had 64.105% Gov. only 35.895% to Joe

3/ 35.895 = 8%

Or another way. Joe takes on the risk of the loan, to buy his tools. He works all day. Hope he gets his invoices paid. and in the end....

Gov takes 64.1 cents of every dollar while Joe only keeps 35.9 cents.


Now WHO do you really work for.
 
Your thinly disguised political question makes no sense.

Why would you wait for a tax increase to cut expenses or increase the price? Cut expenses TODAY. Increase the price to whatever give you the most profit TODAY.

The only thing that might change after a tax increase is your competitors' price (if they are also paying a higher tax).
 
Because if the owner dies, retires, or sells to someone else, the company is still there through either inheritance, or that "somebody else" that bought it.

And I never said anyone had to to be responsible for their employees, but I think most employers feel that way. Just like you to try to put words in someone else's mouth.

I've never seen you say one positive thing about any topic you've commented on. You must be one miserbale loser.
 
Yes,and that's not counting direct expenses of running a business--insurance, interest, equipment and vehicle expense-- almost makes it worth the effort. "Cheat" almost sounds reasonable when you get down to it.
 
And always the last word, I've seen a couple times people beat you down so bad you were talking dribble but still have to have the last word, bought like a woman.
The examples weren't no different, in all those nobody except the original employer was going to keep or felt he might owe something to his employees, but the employees can't expect anymore than their severance or retirement even if the company was dissolved.

"And I never said anyone had to to be responsible for their employees, but I think most employers feel that way"

JUST the impression I got when you said (below). What else could you mean?


""So you would just divest yourself of all your equipment, buildings, vehicles, and stock, and go fishing? And forget about the people you employed, right?""
 
Don't forget your suppliers are gonna raise prices, discontinue products and or reduce services cause they are getting taxed too. Sounds like a downward spiral to me. No nation or state has ever taxed itself into prosperity.
 
And like I said, you've still never had one positive thing to say about anyone or anything. At least I stand up for what I think is good and right, you seem to not believe in anything. Nor do you offer up any answers to the complex and serious issues that face us. You belittle our President, our government, our Constitution, and most all that we hold dear and reverant.

You're a America-hating, pessimistic, pathetic, cynical loser punk.

Go vote for Ralph Nader and leave us.
 
When you say us, you might look around.
What you want is somebody eat up all your crap and take it as Gospel. You might try a day care or Sunday school.

"Nor do you offer up any answers to the complex and serious issues that face us. You belittle our President, our government, our Constitution, and most all that we hold dear and reverant.

You're a America-hating, pessimistic, pathetic, cynical loser punk"
AND you got all that out of me callin you a dumbasss?
 
If this is a serious question, the right thing to do is talk to your accountant, or someone who knows your local tax law...

To my way of thinking, if you try to take it out of wages or benefits you'll pis$ off or lose employees, depending on whether they have better options or not.
Eating it will wear you out.

Passing it on seems to be the most viable option... I'd tend to think that anyone else in your line of business will have the same taxes. If they don't, ask yourself why, or why you're structured in such a way thay you're being taxed and they're not.
There's almost always a way to beat tax legally if you make it your mission to beat the taxman...

Rod
 
Trickle down economics, eh?

That why the jobs have gone in a flood to china, what with the low tax structure and all?

Rod
 
Dont worry, if things go to heck like they say you wont have any taxes to pay because of no profit. you and I and millions others will find ourselves trying to survive.
 
You should be very careful who you listen to about this kind of thing. There's a lot of political scare talk and just plain BS flying this time of year.

Your business would have to be pretty large and pretty profitable to have an additional $100,000 in taxes tacked on. If it's that large and that profitable the addntional $100,000 would be a small precentage of sales - so passing it on would be pretty easy. I have a small tax practice and I advise you to talk with your preofessional.
 
Was wondering how long it would take for you to show up and start some more America bashing. And while things aren't perfect here, we certainly don't require any advice from the peanut gallery socialists up north of the border.

Thanks anyway.
 
Nope, got all that from your past posts, as has everyone else that has read them.

You think you have unique insight and cunning, when in reality you're dull, dim witted, and your arguments lack merit and anything that even closely resembles an understanding of the events that surround you.

You, and those like you, are what's wrong with the country. But we'll persevere, even while dragging your dead weight along with us.
 
In our service type business, the rule is " Take care of the people (employees) that take care of the people(customers) and the business will take care of itself" Content employees make content customers
 
Been a mechanic,catskinner,dairy farmer,cow/calf producer and now a bisonproducer,i have been self employed and worked like a raped ape for the last 40 odd years.Seen all the money go to to keep other people alive and prospering,all they did in return was supply me with high priced products and paying as little as possible for what i produced.most people dont give a rats a$$ about the next guy.
I still care,but am sick and tired of subsidizing this greedy economy.

IMO an employee is more trouble than benefit.

i learned not to trust anyone till proven trust worthy. I can count them on one hand with room to spare.
goverment and autorities are on the bottom of the list, if taxes and regulations get to much,I will bail out.

Whats wrong with that
 
"surprising there isn't more difference for all the hoopala"
The news have broke down each candidates plans several times, and there was little to no differences.
 
Oh contraire. How well I remember the days of not so long ago when 95% of every penney you made over $100,000 was taken away by the federal government in the form of income tax. That was to, in the immortal words of Harry Truman, "protect the little guy from greedy american busnessmen".
 
You must log in or register to reply here.

Similar threads

L
OT: Lack of Knowledge.
2
Replies
31
Views
3K
Bret4207
B
L
Went and bought me an Air Hammer
Replies
17
Views
4K
Charles (in GA)
C
C
Growing grain....LONG
Replies
19
Views
3K
Nate V. IA
N
N
Cost of self employement plus...
Replies
11
Views
3K
trucker40
T
P
Could Regulation of Fuel Work??
Replies
16
Views
3K
Anonymous-0
A
Tractor Parts Tractor Manuals

We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today.

Copyright © 1997-2024 Yesterday's Tractor Co.

All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.

Yesterday's Tractors - Antique Tractor Headquarters
Website Accessibility Policy

Back
Top