I've written a little lately
on the Dunc-Tank (a project to pay some key debian post-holders)
and it's drawn some comments about running a
business. I've owned businesses for years
and there's a lot I don't know, but I've
been frankly shocked by some of the comments.
Here's two more. I wrote:
Double-taxation seems like something a
good accountant should help to avoid -
not heard of it being a significant problem
often;
Today, I read a comment from Joe Buck:
"Self-employed people or contractors have to pay double Social Security taxes in the US. That's because, for salaried workers, the worker pays half and
the employer pays half."
"This is one factor contributing to why anyone considering leaving regular work and setting up shop as a contractor in the US needs to bill 2x their regularly hourly salary to wind up with the same standard of living. In addition to higher
taxes, there's time between contracts, no paid time off, etc."
That's not double taxes.
That's one tax split between two parties.
Half plus half is one, not double.
If the two parties (employer and employee)
are the same (as in self-employment), you're
still only paying the one tax.
If the business is run half-decent,
that tax will be figured into the cost of
the worker, even if it's not in their
posted gross salary.
If the employer part is not widely known,
that sounds like government slyness to me.
Double-taxation is paying the same tax
twice, not paying one tax split between
employer and employee.
By the way, I'm slightly surprised US
contractors need to bill 2*gross.
When taking on new contract staff at a UK university,
I think the cost was estimated at 1.6*gross,
and I think I've already mentioned that the
cost for a UK SME seems to be about 1.5*gross.
We're told that the US taxes less, so maybe
work is much rarer there, or something.
Which brings me to when I wrote:
I think running a business is a choice,
not something anyone ever "had to" do.
to which
Scott Robinson
replied:
"That is certainly an odd perspective
wrt. the choice of becoming an entrepreneur. Have you only lived in places where employment is guaranteed?"
As far as I know, I've never lived in
a place with no jobs at all.
Sometimes the jobs are crap and sometimes the
terms for joining an existing business are
crap (so in my opinion, they might as well not
exist), but if you didn't want to run a
business, you could avoid it.
These are all things you weigh up
when making your
choice
whether or not to run a business.
Is there anywhere which
forces
workers to run businesses?