For all of you I PAY MILLIONS IN TAXES read this

[BradleyT]

If I want to buy a $1000 computer as an individual I have to earn about $1300. My $1300 check is about $1000 take home.

If I want to buy a $1000 computer as a company I have to earn $1000.



Any person can form a company.

[Zetack]

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I haven't really ever looked in these threads, but do you people who pay taxes ever deduct the ammount you paid in rake as a business expense?

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It is assumed rake is a business expense when you total your wins and losses so there is no need to write it off, as a pro you can just net it.

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Sponger, there's nothing to deduct. In order to deduct it you would have to track it, add it in to your income, then deduct it. Kind of a waste of time. Its already factored into your declared winnings and itemized losses. If not your wins would be bigger and your losses would be smaller.

Imagine a home game with no rake. You have a winning session. You walk home with more money in your pocket than in you'd had the exact same hands/pots in a casino with a rake. Conversely if you have a losing session but you won some pots during it, there would've been no rake taken out so your loss would've ended up smaller.

The effect of the rake is already built into the amounts of winnings and losses you report.



It's like this, a movie theater takes 5 cents worth of popcorn kernals, oil, salt and container and sells you a box of popcorn for 3 dollars. They report 2.95 in profit. They don't then go in and say, hey wait a minute, can we deduct the nickel it cost to make it as business expense cause its already built in.

The example is for illustrative purposes only, since it obviously doesn't work exactly like that in real life.


--Zetack

[Kurn, son of Mogh]

The upper middle class pays the freight. Always has.

That being said, Mr. Perot earned his money, created an entire industry, and started at least two companies that between them employ tens of thousands of people. I for one don't begrudge him one penny of his fortune.

[TomCollins]

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Exactly how much did Ross Perot pay in terms of percent. Your point is kind of loss until you say that. You're basically implying he pays 10% while average americans pay 20%.

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I'm sure its some BS thing where he has investments in Tax-free Bonds or something, so therefore he doesn't pay taxes on that income.

[BradleyT]

It's really simple. Businesses get to spend money before uncle sam gets his share. Individuals don't. "Spending money" includes such things as buying new investments.

[PoBoy321]

Just out of curiosity, to give this a little perspective, could you find any data about relative incomes? My understanding is that the same top 1% of money earners earn more than 29.5% of all money earned in the United States, so they would still, relatively speaking, not be paying their fair share.

[Kurn, son of Mogh]

some BS thing where he has investments in Tax-free Bonds or something

Tax-exempt bonds are not some gimmick.

1) they pay a lower interest rates than taxable bonds (about 50% less)
2) they are from either government entities or from not-for-profit corporatrions
3) they are often not as stable as investments in for profit corporations