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<DIV>In a message dated 4/21/2008 6:48:05 A.M. Pacific Daylight Time,
formsma@gmail.com writes:</DIV>
<BLOCKQUOTE
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: blue 2px solid"><FONT
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<BLOCKQUOTE class=webkit-indent-blockquote
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0px; BORDER-TOP: medium none; PADDING-LEFT: 0px; PADDING-BOTTOM: 0px; MARGIN: 0px 0px 0px 40px; BORDER-LEFT: medium none; PADDING-TOP: 0px; BORDER-BOTTOM: medium none">Example:
you buy a tool for $1,000.00. It's a business expense, yes, but it
just cost you $1,000.00. The tax on $1,000 might be around $150.00
(just a guess). Had you not bought the tool, you would still have in
your pocket the $850.00. ($1000.00 - $150.00 = $850.00). In
effect, yes, you got the tool for $850.00, but you no longer have the money
that was used to purchase it. :-) </FONT></BLOCKQUOTE></BLOCKQUOTE>
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<DIV><FONT style="BACKGROUND-COLOR: transparent" face=Arial color=#000000
size=2><FONT face="Bookman Old Style" size=3>Although John was making another
point, I want to grab onto the tax side of this to point out the real value of
making sure to count ALL purchases and expenses. It's even worse, or better,
than John says, depending upon your point of view.</FONT></FONT></DIV>
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<DIV><FONT style="BACKGROUND-COLOR: transparent" face=Arial color=#000000
size=2><FONT face="Bookman Old Style" size=3>Let's say you are a single person
making $50,000 per year. Even with typical personal deductions, the next dollar
you earn will be at what is called your marginal tax rate; in other words, you
are now in the 25% bracket. You are paying 25% on that dollar, PLUS almost 14%
self employment tax, plus maybe 1% state tax if you live in a taxing place like
California, plus 8% sales tax. Ignoring some of the other business taxes which
are part of your overhead, you already give back 48% of that dollar you earned.
So, if you save the receipt for that $100 worth of tuning pin sleeves, the
government has essentially paid for almost half of it. Or if you deposit that
$100 in your SEP-IRA instead of buying tuning pin grease, the gummint is letting
you shelter at least 25 bucks until you retire. With a little attention to your
investments, that alone should grow into quite a bit by the time you retire.
And, as Frank Emerson points out, you need a LOT put by before you can retire.
If you want a retirement income of $40,000, you'll need about a million
bucks.</FONT></FONT></DIV>
<DIV> </DIV>
<DIV><FONT style="BACKGROUND-COLOR: transparent" face=Arial color=#000000
size=2><FONT face="Bookman Old Style" size=3>Bob
Davis</FONT></DIV></FONT></FONT><BR><BR><BR><DIV><FONT style="color: black; font: normal 10pt ARIAL, SAN-SERIF;"><HR style="MARGIN-TOP: 10px">Need a new ride? Check out the largest site for U.S. used car listings at <A title="http://autos.aol.com/used?NCID=aolcmp00300000002851" href="http://autos.aol.com/used?NCID=aolcmp00300000002851" target="_blank">AOL Autos</A>.</FONT></DIV></BODY></HTML>