In a lot of states we’re getting taxed at 30% for people who are self employed. For example, myself, I am a contractor I have no employees and make 70k a year before tax, normal tax is around 13-15% where I live but since I’m considered self employed, I pay 31% meaning almost $25k is done every year. Which is crazy in this economy. There is no point in me paying more, I’m not selling anything, it’s contract work and I don’t have employees so why am I getting taxed basically three times, state tax, federal tax and self employment tax.
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Agree!! It almost feels like a punishment for making a career for yourself Instead of working for someone else. We should be able to pay the normal amount of tax for federal and state tax like everyone else. America NEEDS small businesses and self employed businesses!
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Hello:
How about taxing those above $200,000 for self-employment tax as a compromise? This way, the startups and others have room to roam, and growth could bloom.
Now, it’s $400 once self-employment tax hits - that’s horrible.
MAGA MAHA!
God Bless,
John German
I think if not ended, self employment tax should be reduced to just the “employee portion” of 7.65%. I am a CPA and I have seen that many small business owners cannot afford the full 15.3% self employment tax on top of their federal and state income tax. Many of them fall behind and owe the IRS back taxes because they can’t afford their living expenses/a roof over their heads and the hefty self employment tax. I get that they are their own employer but they are being buried in taxes by working for themselves. They should be allowed a reduction in this tax.