Since the new fiscal year just started for us yesterday, there are a lot of tax increases 2009 that are taking place. If you’re in the states, a lot of people will be affected even more during this hard time in the economy. And I can guarantee that every online entrepreneur making money online will be affected by this in some way.
Let’s start with the tax increases in Massachusetts, since that’s where I currently reside. They will be raising sales tax from 5% to 6.25% which is the first time it has increased since I have lived here. (And I’ve been here most of my life).
That will affect a lot of spending I do because anything I purchase will be slightly higher. So, say I purchase a new computer, desk, chair or whatever for my mini office, the extra sales tax accumulates over time.
In addition, they are trying to increase gas taxes as well. That sucks even more with the high gas rates as is, now traveling to business meetings by car will be just a little more expensive than it usually is.
So, outside of my state, almost every other state is being affected in some way with the taxes. I believe Florida is increasing cigarette taxes, Hawaii is increasing hotel taxes, etc.
If you guys have more details on your state, please drop a line by commenting. I would definitely like to know.
Many of these states have different tax increases but ultimately, all of us are affected. Below is a breakdown in states on who will be increasing taxes and fees. It’s from May so it’s a little old but you’ll get some rough idea for your state.
Now, as an online entrepreneur, we all have to pay taxes. Technically, you’re supposed to report everything you make to the IRS and if you work from home, that basically means you’ll be writing a check out every April. But next year, I believe you will be writing a bigger check.
I read that people making over $250,000 a year will have their taxes increase, but now, even those making less than that will have their taxes increases as well. So, in essence, everyone that pays taxes will be paying just a little more.
In addition, there might be a slight increase in taxes for health insurance which would drastically affect middle-income homes. But nothing has been confirmed about that just yet but as things are slowly having the snowball effect, I wouldn’t be surprised.
The reason why I am posting about the tax increases 2009 is simply the fact that it will affect all of us making money, buying things, or just living in the states during these hard economic times. I’m not a big fan of taxes but unfortunately, there’s nothing we can do about this.
I guess we have to sit here and just watch us get dug into a deeper hole.
Taxes are a never ending battle! They will always be taxing everything and they will always go up.
I spoke to a friend of mine in FL today and she was telling me a pack of cigarette have went up to over $6 a pack!
For us business owners so sub contracters, our taxes will go up again this year I am sure.
Taxes will keep going up because the government is spending too much money and seen a drop in tax revenue. The massive bank bailouts have placed a huge burden on the tax payer. The government is increasingly taking money from productive citizens and giving it to people and companies that are inefficient, unproductive and have made bad decisions.
If you don’t want to pay for this then the main option you have is leaving for a tax haven. While this may not be suitable for some people it will be an option for many online entrepreneurs, especially those that are young and are yet to settle down.
In some countries you will pay ZERO tax on your income as it is generated online and comes from overseas sources. New Zealand is currently offering 4 years tax free on overseas income for online entrepreneurs moving to the country.
There are countries out there that have governments that weren’t so stupid during the boom, manage their money better and therefore don’t need to rip off and endlessly tax their citizens, and these are not necessarily third world or poor countries.
The young and adventurous may even like to spend their time travelling the world, living tax free.
I guess the difference is the word, “not.” — Republicans like to say Tax and Spend Democrats, but the last 3 Republican presidents, under whom 70% of the accumulated national debt was accumulated, are, (NOT) Tax and (still) Spend (like drunken fools) Republicans. We all know, and need to remember, that Rebulicans are the biggest spenders of them all.
Touchy subject here where everyone has an opinion. I wish bad stuff on every single politician who gets into my pocket for crap like sea turtle tunnels, and I don’t care which political party.
Because of taxes, Amazon has shut down all of the affiliate programs for NC in the last week. Pending legislation in NC has forced Amazon to make this move and affected thousands of people trying to provide for their families. I’m so mad while I’m writing this that it’s hard to be nice and control what I want to write.
All I can say is my sincere hope for each and every one of these sub-humans who have no perception of the U.S. Constitution is that someday they will enjoy tea and crumpets with Hitler.
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Paying taxes is super annoying!
Agreed!
I seen on the news a few days ago that their were increasing cigarette taxes. I laughed since I don’t smoke but things are getting harder every where. Just have to do our best to make more money.
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i am so happy SMS text has been canceled by Gov.:)
You should move somewhere with no taxes buddy. Like Dubai!
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I am still under the 250k mark, so I think I will be alright. It is a bad time to raise taxes with the economy tanking..I think this will make things worse.
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I definately think that the tax increase will hit people hard.. especially in this economy. I’m not sure what the situation is here, but I’m not looking forward to a rise if it happens
Tax has increased by 4.99% overall, why does the bill for my property show an increase of more than 4.99%?
This coupled with certain states forcing amazon affiliates out is all counter productive.
Boo taxes. It’s a perfect fit that you posted a picture of someone burning a 20. Gas prices are high enough already, they have been pretty high for a long while now. Oh it definitely hits hard, Olga.
Till then,
Jean