Taxes for businessman are too much

2012-10-12T00:00:00Z 2012-10-12T10:39:33Z Taxes for businessman are too much stltoday.com
October 12, 2012 12:00 am

You cannot dismiss Michael Bonadio by merely referring to him as a sucker ("Amped-up about taxes," Oct. 9).

Using your numbers that assumed Mr. Bonadio's electronics business has taxable income of $335,000, he would be required to pay 22 percent on the first $100,000 (i.e. $22,000) and 39 percent on all amounts greater than $100,000 ($91,650), plus 6.25 percent for Missouri corporate taxes ($20,937.50), a total of $134,587.50 or almost 41.2 percent of his taxable income. And then as you pointed out, he has to pay Social Security and FICA taxes as well as  the local sales and property taxes, all of which could easily amount to nearly $30,000 per year. If it is not exactly 50 percent, it's going to be close.

The real difficulty with this analysis is not so much that Mr. Bonadio's tax bill is 40 percent or 50 percent or 60 percent, it is that when any other would-be entrepreneur looks at these numbers, he or she quickly concludes "What's the use?"

Wayne C. Workman  •  St. Charles

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