I'll probably get an earful from faithful FFE reader Inky, but I received a not-so-free lesson in running my own business yesterday at the office of our tax man.
Two years ago this month I started a small venture - jlsmediaservices - so that I could do a little part time writing work after I left the newspaper business. I picked up one client and in 2009 made a whopping $19,000. After business deductions (losses) I show a profit of about $16,000.
During 2009 I made estimated $900 quarterly tax payments to Uncle Sam. My wife and I each have retirement income for our careers so it was time to pay the piper on Wednesday.
As a "small businessman" I ended up paying a 25 percent federal tax, a 4 percent State tax, a .5 percent city tax and then had to pay both ends of my Social Security - 15 percent - on the profit.
I have to pay the Social Security even though I am receiving my benefits and any more money that I pay into the system will not change what I already receive. It's my little gift to the federal government.
To be honest, I was planning to lighten my work load this year because you can only make $14,000 a year if you are drawing Social Security without paying a penalty.
So, thanks to the government, I will be shutting down my business in June. All done, finished, not going to work anymore. I was mad enough that I was ready to shut it down last night, but I have a responsibility to finish work for my one and only client.
The fact that the government confiscates 45 percent of my profit means that 25 minutes of every hour I work is for the government. Just not going to do that.
Remember, Almighty God only asks for 10 percent.
Looks like my real retirement will begin in June. Thank you, Uncle Sam.
It is no wonder that unemployment is as high as it is.
Your turn Inky. Tell me how wrong I am not to want to give the government 45 percent of my labor.