[montbonnot]

Sure.. what if you're an LLC making apps (single owner). How do you re-invest your million dollars into your business? Your business consists on a laptop and yourself. That's all you need to make apps and to sale them on the app store... You would most likely be working from home. So you have to file a regular income tax since you'd be a sole proprietorship. The business money is your income money because you have to "withdraw" that million dollars from your LLC to your personal bank account. If you leave it in your business it would be taxed anyway. So at the end it becomes regular income tax and you fall into the seventh bracket (federal: %39) + state tax + self employed tax (%15). It's more than %50... Sucks you made a million dollars and you have to give away half. That's why I don't get it when democrats think that millionaires avoid taxes. There's no way around for most of the small business owners.

[Avshalom]

Well then you didn't make a million dollars, you made 500k. Gross is an admittingly galling fiction but is for day to day purposes pretty much that, a fiction.

[montbonnot]

Transform these %50 taxes (money you're giving away for free) into time. You're now working %50 of the time for free while you could spend more time with your family, kids, friends, learning things, etc. It's not a fiction, it's reality.

[Avshalom]

No you're working 100% of the time for less money than the gross wages number on your check.

[montbonnot]

Yep, reality sounds like an nightmare. Thanks for re-clarifying :)