If America has a gutshot wound, then which candidate has the strongest Bandaide? Tonight’s CNBC GOP presidential debate provides another opportunity to listen. Keyword is listen. Remind me again… what does the Confucius say about listening?
If you’re voting for Obama, you should still watch so you’re not pissed off tomorrow when you read a half-assed headline by someone who didn’t even watch the debate but can pull a few sentences out of context. But hey, if the headline gets your click…that’s all that matters.
Still not watching the debates? Fine, here’s a word problem on taxes that no one will read. Enjoy your evening.
John Doe earned $100 annual salary working 40 hours a week at ABC Toilet Paper. John paid $28 in taxes and used his $72 to start Acme Company. Two years later, working 80 hours a week, John’s company earns $150 in taxable profit.
John pays 35% corporate tax ($53) on the $150 and pays 10% ($4) payroll, Medicare and social security taxes on his employee Sally. Sally makes $40 and pays 25% ($10) in taxes. After John pays the above taxes, the balance is $94. What is the best way for John to pay himself?
- Does John pay 10% employee and 28% personal taxes on $94? If so, how much will John take home?
- If John pays 15% dividend on the $94, overall, does he pay more or less taxes than Sally?
- Does John make more or less being self-employed? Does the government make more or less when John is self-employed?
- Should John close his business, fire Sally, and return to ABC Toilet Paper?
- Should presidential candidates be required to debate or prove money management?