Entries Tagged 'Self-employment' ↓

Could Layoffs Signal a Recession?

Predictions of an upcoming recession are seen daily in global news sources and online. But how can we know for sure what’s going to happen?

Last time we looked at bond yields and stock prices as possible indicators of a coming crisis. Today we’ll look at layoffs as a possible signal of recession.

Layoffs

One of the reasons that the US Federal Reserve raised its rate for overnight borrowing by investment banks and financial traders this year was that employment had improved in late 2015.

However, articles about the employment numbers pointed out that quantity does not always equal quality. Continue reading →

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Self-Employed? Take Smarter Deductions!

Taking business deductions creates two problems for the self-employed:

Deductions encourage self-employed workers to compete in “a race to the bottom. Self-employed try to earn the least money possible in order to pay as little as possible towards SE (Social Security/Medicare) taxes. Instead of focusing on growing their business, they fixate on keeping it in check by spending more and thus, earning less.

Deductions can threaten self-employed worker’s retirement. The US Social Security Administration uses NET BUSINESS EARNINGS rather than gross business earnings to determine unincorporated self-employed workers’ Social Security eligibility and payout at retirement.

Yet, it’s in the interests of our Social Security system for the government to encourage self-employed to earn more money. In fact, it’s in the best interests of all Americans to help self-employed businesses survive and thrive. That’s why I’ve proposed a “No-Cost Tax Break for Self-Employed“.

But even if we reform the SE tax rate, how do we get self-employed workers’ incomes headed upwards instead of downwards? Continue reading →

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A No-Cost Tax Break for Self-Employed

A reader of a recent post asked, Nancy, I understand that a self-employed person has to shoulder the expenses that an ordinary wage or salaried person does not. But if those expenses are legitimate, and a self-employed person doesn’t earn enough to pay SE tax, how can that person even make a living to survive? If they aren’t making enough revenue to cover their costs of operating their business, how can they afford to cover their personal expenses to survive?

This is the key question I’ll discuss today. It’s why I believe some self-employed workers need a break on paying SE tax. Continue reading →

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