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**brraverishhh** · 08-03-2011, 04:30 PM

Have you even read the article that you linked to?

Besides that....try this on for size....businesses factor tax cost into their price structure. Profit from a Subchapter S corporation or a Partnership passes through to the shareholders/partners who then pay taxes on it. The business entity generally isn't responsible for any taxes. Partners in a Partnership pay not only ordinary income tax on the proceeds from the business but also have to pay Self Employment tax. Shareholders in a Subchapter S Corporation are required to take a reasonable salary and they are taxed on that as well as having to pay income tax on any pass-through profits. A Corporation (C Corp) IS responsible for paying taxes on its profits but that factor is built into the pricing so the more tax they are forced to pay the higher their prices need to go.

As far as government workers getting their pay cut....the money that they contribute to their retirement isn't really a cut. It's still their money and they will get a future value for that money which will be a multiple of what they have contributed. As far as paying for their own health care....tough shit...welcome to the real world.

If as a part of your employment contract, your employer was paying into your retirement plan and paying your health care, and then you had to pay some of your health care and you had to pay into your retirement, because your employer paid less, your paycheck is smaller, because your pay got cut.

The employer contribution is a part of your pay package.

If it gets cut, that's a pay cut.

08-03-2011, 04:30 PM	#4
brraverishhh Join Date Jan 2006 Posts 5,127 Senior Member	Have you even read the article that you linked to? Besides that....try this on for size....businesses factor tax cost into their price structure. Profit from a Subchapter S corporation or a Partnership passes through to the shareholders/partners who then pay taxes on it. The business entity generally isn't responsible for any taxes. Partners in a Partnership pay not only ordinary income tax on the proceeds from the business but also have to pay Self Employment tax. Shareholders in a Subchapter S Corporation are required to take a reasonable salary and they are taxed on that as well as having to pay income tax on any pass-through profits. A Corporation (C Corp) IS responsible for paying taxes on its profits but that factor is built into the pricing so the more tax they are forced to pay the higher their prices need to go. As far as government workers getting their pay cut....the money that they contribute to their retirement isn't really a cut. It's still their money and they will get a future value for that money which will be a multiple of what they have contributed. As far as paying for their own health care....tough shit...welcome to the real world. If as a part of your employment contract, your employer was paying into your retirement plan and paying your health care, and then you had to pay some of your health care and you had to pay into your retirement, because your employer paid less, your paycheck is smaller, because your pay got cut. The employer contribution is a part of your pay package. If it gets cut, that's a pay cut.
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