Comedy Central on "Joe The (Fake) Plumber"
Indecision2008 writes a funny blog post on the messy personal life of Joe the (Fake) Plumber.
And they write something that bothered me as a former accountant: there is a kinda big difference between GROSSING $250,000 a year and making $250,000 a year in before tax PROFIT. When "J T (F) P" asked Senator Obama the question that led to this major media event, Obama may have mistakenly thought that the man was claiming to net $250K. But plumbers have expenses such as salaries for assistants, cost of materials, gas, truck payments, shopfront rent, payroll taxes, etc etc.
You don't pay taxes on gross income, only on income after expenses.
And they write something that bothered me as a former accountant: there is a kinda big difference between GROSSING $250,000 a year and making $250,000 a year in before tax PROFIT. When "J T (F) P" asked Senator Obama the question that led to this major media event, Obama may have mistakenly thought that the man was claiming to net $250K. But plumbers have expenses such as salaries for assistants, cost of materials, gas, truck payments, shopfront rent, payroll taxes, etc etc.
You don't pay taxes on gross income, only on income after expenses.
posted by joe sweeney at 3:56 AM
0 Comments:
Post a Comment
<< Home