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Thu Sep 11, 2014, 12:38 AM

 

Small business - tax picture 2014 - 401k yea!!!

As discussed in a previous thread about "hating" rich people, I pay a lot of taxes. I take the concept of paying a lot of taxes as a compliment and a blessing. I grew up poor. Struggled through college working my ass off and getting low cost student loans and pell grants by the grace of democratic policies.

Reagan was elected in my last 2 years of college (which took 3 years because of stopping and starting due to finances). Fucked me up totally, financially, and made me a Democrat for life (53 now). That's when I learned that republicans were greedy, self centered, and had no clue about investing in future generations that would grow and keep our economy strong. Short sighted Idiots.

Got my degree, worked for the system, learned the skills. Fast forward to 1999. I saved up, started a business in B2B consulting (healthcare sector). Lean times. Health insurance would have been nice. Thanks, Obama, that new entrepreneurs can have that now. Bravo.

I was hanging in there - doing okay. Then Obama gets elected. I won't lie, he wasn't my first choice. But damn, we were in the shits. He pulled us out. All of the sudden lots of unemployed people on the street - smart people, but no college degrees. I expanded in 2009. Honestly I only expanded to a new business because I thought people are hurting, and I can train and give jobs. I didn't really expect to make much off it. It made me nervous as hell to have 20 plus people depending on me to pay their paychecks every 2 weeks.

But good jobs. 2.5 to 3 times WA state minimum wage. Plus some lucrative manager salaries. 29 days PTO. 100% employer paid health, dental, vision, life insurance, plus quarterly bonuses. I'm feeling good. And yes, making more money since 2009.

Talked to my accountant yesterday. I'm paying 31% of profit in federal taxes this year. That doesn't include any other taxes I pay, which are numerous and put me well over 50% of gross. So I say, how come Mitt only paid 11%? He says well you don't have those kind of tax shelters available to you. No small biz does.

I say do I have any that would benefit all of us? (Meaning my workplace family). He says what about a 401k with employer match? I say right on brother! It's my small biz dream come true. I'm finally successful enough to offer it. I won't save any real money, but more will go to my employees instead of to the department of defense.

This is a very happy day for me. One of the happiest ever besides my marriage and birth of my son. It's definitely the pinnacle of my biz career. Mission accomplished!

P.S. I know this is long. Thanks if you read it. I'm just so happy!

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Reply Small business - tax picture 2014 - 401k yea!!! (Original post)
MaggieD Sep 2014 OP
Sunlei Sep 2014 #1
MaggieD Sep 2014 #2
Thor_MN Sep 2014 #3
MaggieD Sep 2014 #4
Suich Sep 2014 #5
NBachers Sep 2014 #6
pnwmom Sep 2014 #7
madokie Sep 2014 #8

Response to MaggieD (Original post)

Thu Sep 11, 2014, 12:53 AM

1. That's a good accountant you have!

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Response to Sunlei (Reply #1)

Thu Sep 11, 2014, 01:04 AM

2. Yeah, I fired the RWNJ accountant I had

 

I'm much happier with this one.

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Response to MaggieD (Original post)

Thu Sep 11, 2014, 01:52 AM

3. Good for you!!

 

I just wish that once in a while when Repugs said "small business" they were talking about something like yours rather than large corporations, the only businesses they care about.

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Response to Thor_MN (Reply #3)

Thu Sep 11, 2014, 02:00 AM

4. No kidding

 

First, small biz is defined as less than 500 employees. Ridiculous. Second, I constantly tell my biz clients "when republicans are talking about being pro-business they aren't talking about being pro small business. They are pro big business that uses those tax breaks to crush you, the competition"

The only tax break I EVER got in 15 years as a small business was from Obama. ACA tax credit for employer paid health insurance. I challenge my clients to let me know about any other. They can't do it.

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Response to MaggieD (Original post)

Thu Sep 11, 2014, 02:35 AM

5. Great post, MaggieD!

You should post more often!

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Response to MaggieD (Original post)

Thu Sep 11, 2014, 03:05 AM

6. Congratulations, MaggieD, and it's nice to read your post. Stick around and post more!

I started a little late into my 401K, but I just checked, and it's getting 10.59%.

Thank you for giving your employees a chance to build for their future. I like your spirit.

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Response to MaggieD (Original post)

Thu Sep 11, 2014, 03:35 AM

7. What a different world it would be if all employers were like you.

Thanks for sharing your story, MaggieD.

And I wish you and your company every success!

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Response to MaggieD (Original post)

Thu Sep 11, 2014, 03:49 AM

8. Proof there are some fortunate people in this world

and I mean the people who work for you and receive the care you give, if care giving is your business that is, if not then just the well intentioned way you conduct your business and live your life.
My hat is off to you

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