Bedford Ramblings
Steve Mills

OK, OK, I'm getting back into the 'generic' blog posting.

Posted Tuesday, February 23, 2016, at 2:37 PM
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  • it makes too much sense Steve haha

    Good luck!

    -- Posted by espoontoon on Wed, Feb 24, 2016, at 6:42 AM
  • I'm just glad I don't have to drive around the square any longer to get to the other side of town!....signed: Restless in Shelbyville!

    -- Posted by chefgrape on Wed, Feb 24, 2016, at 11:08 AM
  • I would have e-mailed you, Steve, but I do not know your e-mail address. I suppose there is the risk that the responses (if any) will be colored by peoples perceptions of me as a conservative (because I am) or a liberal (because I prefer facts to crazy talk), here is an issue that no one is talking about; Self Employment Tax.

    We live in a time of a changing economy. Computers, and the internet in particular, are drastically changing the employment opportunities that are out there. Nothing has had this much effect on our society since the internal combustion engine. Thousands, maybe millions, of jobs are simply ceasing to exist due to a combination of: functions being automated, businesses no longer serving any purpose, and older workers' job skills becoming obsolete. The response to a changing world is often one of despair (accounting for much of the panic we see and hear these days), but it could as easily be seen as a time of enormous opportunity.... for every buggywhip maker and stablehand who was put out of work by the internal combustion engine, there were probably a hundred "new" jobs created.

    I see the current economy as an entrepreneurial economy. New opportunities are being created, but we do not know what they are until they happen. We need to expedite the generation of these new ideas by economic policies that encourage entrepreneurship.

    Instead, what we have is a punitive Self Employment Tax. I have learned about that first hand. To be fair, I am not one of those innovative minds creating the jobs of the future. I am just on old guy who hit retirement age, and does not feel like retiring. I like to work. That is what I do for fun. Unfortunately, for my age group, the only job opportunities seem to be "greeter at Walmart." So I decided to turn one of my hobbies into a job; the challenge being to make more than I would have made as a greeter at Walmart.

    I succeeded the first year. I made a little more than I would have made as a greeter at Walmart.... Then the Self Employment Tax took half of it. The second year the business more than doubled. I made about the same amount as a young professional, right out of college.... Then Self Employment Tax took a third of it. Now, this is not a huge deal in my situation. I just have to dip into my retirement to pay for the privilege of working... and wonder why I don't just sign up for Social Security and wait for my check like everyone else? However, if I were a bright young man, with an innovative mind, the Self Employment Tax could well prevent me from successfully starting a business that might some day provide a lot of employment opportunities.

    So, I cast a critical eye on our so-called conservatives in congress... including, maybe especially, the ones from here in Tennessee, and I ask myself why issues like this get zero attention. Could they not find time, between their important jobs of hindering the nation because they do not like the President, doling out largesse to huge corporations, pandering to the hidebound old people who are afraid of changing times, and trying to codify their religious beliefs into law; to address things like the Self Employment Tax? How hard could it be? Maybe they could set a cutoff for earnings before the Self Employment Tax is exacted. Or, maybe they could allow for a certain number of years before it was applied? This does not seem like an expensive, nor a particularly difficult issue to address.... if our elected officials would assign it half the importance they give to interfering in people's personal lives.

    -- Posted by lazarus on Wed, Feb 24, 2016, at 11:18 AM
  • Interesting and well thought out post lazarus. I will create a post with this leading it. My email link is under my smiling face (yes, that is about as much of a smile as I have)

    -- Posted by stevemills on Wed, Feb 24, 2016, at 12:56 PM
  • *

    Kinda funny lazarus claiming to be a conservative. That being said, he is right about the tax code being punitive. The only answer I have seen from the left to the question "how much is enough?" is "more". Except of course for burny. When he realizes 90%plus on the top 1 % isn't enough, then he will have to take everything from everyone. Then we will get what we deserve unless we have the guts to wise/rise up and say "enough is enough". By the way, the self-employment tax is approximately 15%. The same as what you and your employer would pay if you were employed.

    -- Posted by fair share on Wed, Feb 24, 2016, at 3:11 PM
  • *

    I'm not sure but isn't the tax when you are self-employed 15% for Soc. Sec. and 15% for Medicaid and your self-employment tax is whatever income bracket you are in at the end of the year?

    Plus your property tax for your office, warehouse or room in your home, tools and all of your business equipment including your vehicles used in your business. They want you to list your (cell)phone and pencils, office supplies, etc., you use so they can get more tax money from you.

    And this doesn't include any late filing fees, License renewal each year which are also taxes. You also have penalties if you estimate your next quarters income too low or lot more than you thought you would make.

    Then you have workman's comp for your employees which isn't a tax, but might as well be, because the Government can make you buy it even if you don't have 3 or more employees.

    After all that, there isn't much left for you or your business except what you can depreciate each month.

    -- Posted by sui on Wed, Feb 24, 2016, at 8:55 PM
  • That is perfectly all right, Fare Share. I don't consider you to be a conservative, either. So, I suppose that puts everything in balance.

    -- Posted by lazarus on Thu, Feb 25, 2016, at 12:47 AM
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