Hey, Joe Wurzelbacher
You, Joe the Plumber, say you will to be paying for your business for many years to come and at the same time your profit (income) will be more than $250,000. Your gross income may be 250K, but I doubt that your net income will be this high. Your payments on your business loans are deductible. After all your business deductions -- employee salaries, rent, trucks and gas, machinery, parts and supplies, upkeep, utilities, and other costs of running the business you may have a profit. On the amount above 250K that is pure profit, you will pay 39% instead of 36% in tax.
You might want to tack up the little sign on wall in your shop, Joe.
Ask me how I know.
Mother of two and
small business owner