What is Joe Biden's Tax Plan for Small Business Owners? | Mark J Kohler

Gentlemen, thanks everybody. We're broadcasting on several streams, so we just want to make sure we're rolling here. We're going to be double checking. My name is Mark Kohler. Please don't scroll past this yet until I give you a little introduction of what I'm going to be talking about here. Obviously, if you've seen the title here and the the 4x4 image, I want to be talking about a very important topic, Presidential candidate Joe Biden's tax plan. Now, a few comments. I want to be as nonpartisan as possible. This is not a pro Biden speech. This is not pro Trump speech or against Biden against Trump. This is, I want to give as honest, transparent results of all the articles researched, the statements that Joe Biden's office has made that he's made himself his documents that he's released, his policies. And I'm going to do my best to not offend anyone here. Now, with that said, I know many of you are already small business owners or you wouldn't be watching that, watching this. You're either through entrepreneur Facebook page or through my own page. And you're at least, at bare minimum a real estate investor. But I'm here as a regular American as well. I want what's best for the country. And always saving taxes isn't always the best thing. I get that there's things that President Biden or President candidate Joe Biden, I'm gonna call him Joe Biden. There's things Joe Biden I want to be respectful. There's, there's areas of environmental policy and social agendas and all sorts of things that Joe Biden would do great with, that maybe President Trump has done a terrible job with or his ability to handle Twitter or whatever the case is. There's a lot of issues. I get that. And there's no perfect candidate out there. So I'm just going to say this one last time and we'll jump right to it is I'm going to focus on tax strategies and what it means not for our big corporations, not for regular Americans. What he has specifically said about small business. That's it. That's what we're going to cover now with every item of research that I could find on every statement and article and document that he's released over the last year, including I was on the phone today with a manager in his campaign office this morning and had a great conversation, very helpful people, great people on his campaign, helping him with everything he's doing. And I'm working on getting some more answers from his policy advisors on the tax plans that he's throwing out there. So I'm doing my best. I want to be an advocate for you, the small business owner, the real estate investor side gigger side hustler. I don't know if that sounded good, side hustler, but I'm going to try to make this enjoyable. Fun. We're going to have a good time here as best we can. Now, I've got my whiteboard ready to go here. We split screen yet? No. Yes. When we go split. Okay, we've got split screen. So. So when we're ready, I'm going to probably do some diagrams here. I want you to understand what these tax policies mean. And I wanted. I've told so many people on my staff just today that, hey, if you guys don't understand this, there's a problem because you're my target market. I want the average American Main street business owner to be able to understand these tax policies and procedures that are helping you in small business. So there we go. That's my disclaimer. If you've got some hate comments below, just keep the swearing to a minimum. I understand everybody's got a voice. I'm not trying again to make anyone mad. I'm just going to tell you what they are. Okay. Now, and I'm having campaign headquarters for Biden. I've got a direct line to some of their key people that are going to comment on my article that will be out later tonight. I wanted to touch it up one last time. I've been working on it for several weeks. It's a lot of work, a lot of stuff. Okay. I'm a glass half full kind of guy. So I like to talk about the good before the bad. And I think I need to do it that way. I think there are some things, obviously, that President Joe Biden's trying to throw out there that are good. And then there's some things that I think the average small business owner will go, ouch, that's not great. Now, you may still say, hey, I love 30 other things about Biden. I'll take a hit. I'm going to vote for him anyway. That's cool. I'm not telling you to vote one way or the other. I just want you to have all these, the facts. All right, so here's four things that he has said are great. The first one is right off of his campaign website. He wants to set up a true small business fund, $60 billion for business owners with less than 20 employees. That's better than PPP. Now, we know with the CARES act, everything that went down with COVID we were trying to get the PPP and the Eidl money. And a lot of big businesses got money, a lot of small businesses got money. He and his wife on that page have said we need to help more small businesses with 20 or less employees. We want to set up another fund for another round of money. Cool. Now, they can't do it without Congress, but that's one of their objectives. Number two, he wants to reduce licensing in certain industries. That is burdensome. He has been specific about hair salons. It's kind of interesting. I don't know why he's picked on them as an example, but I think their licensing is extremely burdensome. There's so many professions you can get licensed in with fewer hours than having to go to beauty school in New York for a thousand hours to work in a hair salon at Supercuts, but whatever. So he's, he's about reducing burdensome regulations. Cool. That's number two. Number three, he wants immigration reform. Now, that's an issue for small business owners. Because if you're a small business owner looking for low wage earners, I'm in a farm community here in a small town America, and there is a lot of Hispanics and small businesses that hire immigrants and they need it during the harvest times. California, big state for this, the meat industry, meatpacking industry. So easing immigration and making it easier for people to work in America does help small business. And he's indicated that. He said that helps small business. Fair enough. And then number four, he wants to continue supporting local and regional SBA type organizations. That's a Small Business Administration that support entrepreneurs, getting them educated. A lot of people lost their jobs. There are estimated over 8 million new side hustlers, side giggers out there that started small businesses that lost their job due to Covid. And so, and I'm out there, I love supporting small business owners and yada, yada. I've got some things I'll mention at the end of the broadcast that might be of help to you as well. Okay, so those are four things that he's already trying to say are good. Now I guess I could. I'm just going to dive into the 10 11. I got 11 things that you need to know about and they're not all that great. But again, you just need to know where President Biden's coming from. And I've got all sorts of statements and articles that. And where he was when he said this. Or that I don't know if I'll get that detailed. But I've tried to really do my background here and asbestos, a little newspaper reporter would do. Okay, so now at the end of this and throughout, I will take some questions. I need to say that. So if you have any questions below Jack on my marketing committee here, he will help out, make a note of those questions. And then you just, when we're ready, we'll do a few questions. If they're poignant, to the point, interrupt me and we'll go for it. Okay, here's the one that's right out of the gate. And I'm going to list these on our whiteboard here. And I. Can I unplug this now or were you just charging it? Is that good? Is that all it was? No, I'm not going to unplug it. All right. I get in the eye. All right, number one. And I guess. And I'll make a list of the. The good as well when we're finished here. Maybe I should do that now. But let's get moving. I want to keep moving. Number one, this is the thing that's not great. In order to attract the Bernie Sanders followers, the voters for Bernie Sanders, he needs to be more progressive in his tax policy. Now, what progressive means is that the people that can pay taxes should pay more. That's what Bernie Sanders says. The rich need to pay more. The poor can't afford it. It's not fair. Let's let the wealthy pay more in taxes. Now, some of you, you're all for that. I get that. That's cool. That may be your position. That's called a progressive approach. A flat tax harder on people with lower incomes. And a progressive system says we're going to have lower rates for those that make less money and higher rates for those that make more. Well, we already have that. We already have that. But he wants to increase the rates at the higher levels. Higher tax rates for wealthy and lower tax rates for lower income. Okay. Now with the Tax Cuts and Jobs Act, GOP and Trump, they reduced the rate down to 37 where it. Now he wants to bring it back up to 39.6. What's crazy, you put that together with the California state rate, you could be paying 54% in your next dollar you earn in taxes in California, as an example. Brutal. Now, this is just on paper, he wants to increase rates. Now, you may say, well, that's an individual thing. That's not a small business owner thing. No, it is as a small business Owner, you're going to pay more in taxes the more money you make. So that's point number one and that's cool. His point is, and some of you may believe in this, that those that make more money should pay more in taxes. And let's redistribute some of that wealth. Okay, now two, number two is higher. Well, I'm going to say it this way. If you remember, in the Tax Cuts and Jobs act that became effective in 2018, it was a $2 trillion tax cut. And if you're a small business owner, you were loving it. Getting. You may have hated Trump, but there was some good things in there. The auto deduction is amazing right now. The bonus depreciation real estate deductions are excellent. Equipment purchase write offs. They go on and on. The deduction for paying your children and their standard deduction went up. So if you're a small business owner and you've been a follower of mine at all, you've already seen and in my book, the Tax and Legal Playbook, second edition, after the Tax Cuts and Jobs act, you know, there's some sweet stuff. Well, he has said, quote, unquote, very specifically, I want to get rid of a bulk of Donald Trump's $2 trillion tax cut. I want to go in there and cut that. Now, you may think, well, that's going to be hard to do. He's got to get Congress involved. 50%. Now, this is where you might hate Trump more, the gop. I'm just saying these, I'm going to go both sides here. I'm just trying to get both perspectives here. 50% of the Tax Cuts and Jobs act expires by 2024. The rest is gone by 2025. So that big tax cut that we saw is set to expire. Now, why the GOP did this is because it was job insurance, it was employment insurance. Because if Joe Biden gets into office, he said, hell no, I am not renewing the bulk of those tax cuts. I want to get taxes back up. I'm going to not allow a lot of these write offs and it's not good. That's his point. I don't, he doesn't think that tax cut was a good thing. So by 50% expire by 2024. Now, what that means, in summary, as a small business owner, whoever is in presidency the next four years will control these write offs, will control the write offs. So if you say, hey, Trump drives me crazy, but I like what he does for my business, cool. If you say Trump drives Me crazy. I don't care if my tax rates go up and these expire. That's cool. That's the informed decision you need to make. Alright, so that's point number two for small business owners. A lot of these write offs that we've been seeing are going to expire and Joe Biden has specifically said, hell no, I am not renewing those. All right, now we get to. Oh boy, where do I go? Okay, the third thing he said, I'm going to jump around here a little bit on my notes is he said we're going to increase minimum wage across the country to $15. Now I've got a couple children that would love to make $15 an hour and I get it. And working for less than $15 an hour, I don't know how people do it. Right. It's, it's bad. But it also on the reverse side makes it very hard for business owners. I'll be honest. I've got three interns this semester from the local college working in my office. They're loving it, getting great experience. I'm not paying them 15 bucks an hour. And they're okay with that. It's part of their employment experience and education experience at the local college. Small business owners that have to pay $15 an hour to everybody across the board, that for you and your business, that may be okay. You don't have anybody that low wage. For others, that could be devastating. And they want. He wants to increase the Family Sick and Medical Leave act, that's Family Medical leave Act, to 12 weeks paid vacation or paid time off to go have a baby or you're sick or whatever. So if you're a small business owner and you have an employee that I'm sick or I'm having a baby, you got to pay my wages for the next 12 weeks while I'm out. Wow. Okay, so that's a cost to small business owners. And again, some of you that may not affect others. Big deal. So you got to think about that one. Okay, let's just delete that. I'm not going to write that. Okay, Cost to small business. All right, number four, want to keep this simple here. Let's go into real estate for a minute. Many of you that might be real estate investors. It's very blatantly clear in a number of his articles. And this comes out of his white paper statement he made on Tuesday, July 21. He said he released this paper. It's on his. Can you guys see this? No. I need to show over here. Got the camera he released this to the country titled the Biden Plan for Mobilizing American Talent and Heart to create a 21st century caregiving and Education Workforce. It's also been called a caring economy. That's this white paper. And he wants to do a lot of good things to help people and mostly workers and those that need support, some help and some community services and Medicare and Medicaid and healthcare infrastructure and quality childcare. And you can go read this, you can go download this. Kindergarten availability, middle class families, bigger tax credit, blah blah, blah, blah blah. And he says right here in the middle of this, right at the very beginning, I want to read this to you. The plan will cost. This is right in his document. The plan will cost 70,775 billion over 10 years and will be paid for by rolling back unproductive and unequal tax breaks for real estate investors with incomes over 400 grand and taking steps to increase tax compliance for high income earners. Now some of you may say, hey, if there's someone out there making 400 grand or more, they can pay more. They don't get the tax benefits. Okay, that's, that's your opinion. Again, I know a lot of real estate investors. Their goal is to create cash flow income and, and take advantage of depreciation. And even farmers that are going to sell real estate would be affected by this. So let me tell you what these provisions are real quick. So for real estate investors, take note here. And I want all my clients to own a little rental property somewhere. So this is going to affect you. Number one, he wants to kill the 1031 exchange. Gone then. Very clear about that. Now for those of you that don't know what a 1031 exchange is in a nutshell, I can sell a property and go take the proceeds. It's called, with a qualified intermediate intermediary, it's called a delayed exchange. The money goes into a holding tank and then I go out and replace the property with one of equal or greater value. Now that's at its most simplest form, I can sell one, buy three, sell three by one. I had a client that sold one and bought 30. You know, there's all sorts of ways to do it, but you're going to go exchange a property. When you do that, you don't pay any tax, no tax, but the tax stays in the new property and that basis carries forward and you're going to pay the tax someday when you sell it. Well, he thinks this is not fair. 10:31 Exchanges should be abolished. Okay, so if any of you have done a 1031 exchange before? I have. They're kind of helpful when you sell even a little property for 100 grand and there's a gain in there, you could do a 1031 exchange. He also wants to get rid of flow through losses. What now this I don't. I need to grab a book of mine. I've been writing about this for 20 years. This is one of my best strategies for small business owners is. And I'm going to diagram I'm safe. So let's do this real quick. I'm going to just kind of diagram it. Eliminate. Oh, we got a couple books here. Tax, legal playbook baby. This is what you want. Get it on Amazon. Okay. Eliminate flow through losses. Now, I don't know why it's doing that. I may have to have you guys help me. There we go. Okay. Eliminate flow through losses. Now how this works for many of you that are like, what's this guy talking about? If you've got a W2 day job or say you have a little small business, little 1099 or maybe you've got an LLC or you've got an S corp, so you've got all this little ordinary income over here, you're making money and it's all going to flow down to your 1040. All right, that's cool, that's great. Then over here you go buy some rental property. Oh cool. When I buy rental property, I might have losses from the big D. And I don't mean Dallas or divorce, I mean depreciation. So depreciation comes through and that depreciation can wipe out the taxable gain. So I end up with cash flow and I get this loss that flows through onto my individual return. Now if you make too much money, it goes into a carry forward bucket. If you're a real estate professional, you get it. But he's saying no way, don't like it. Now I don't know how that's going to affect realtors or brokers or full time real estate professionals or just investors. And what income level? We don't know. But he says no more. That's going to help pay for this better economy thing. Okay, now number six. All right, where are we at on our list? Eliminate flow through losses. All right, capital gain, let's go there. Capital gain. He wants to increase capital gain rates now. Right now there's a 0% rate, 15% rate or a 20% rate. Now what A long term capital gain is long term capital gain. If you own a property or a Stock for more than 12 months. So you own an asset for more than 12 months. When you sell it, you don't have to pay taxes at your regular rate. You get these preferential long term capital gains. So if I make a million dollars selling my business, selling my home, or selling my rental property, now there's a sale of home, a personal residence exclusion that may apply. But for the most part here many business owners go to sell their business. And again, this could affect real estate investors. But this is both of you. You would love that 20% because you might be in a 30 or percent or higher bracket the year you sell your business, but you get to carve out that part and call it 20%. That's, that's a good thing and we're motivated to build our business so I can sell it and have this lower rate. Now that was very capitalistic thing to say. So again, I don't want to offend anyone, but Joe Biden says if you make too much money, no way you don't get this 20%, you're going to go up to 39.6 and we need to go there. So that is his point of view. Long term capital gain goes away for those that make too much money. Now what that boundary is going to be, we don't know. A million dollars sale has been thrown around as kind of that threshold. Now I have a lot of clients that do not consider themselves rich, that own a little farm, own a rental property, a little fourplex. They may own a small business and that's their retirement. And when they go to sell it, they could lose 40% to federal tax, not to mention state tax. If you're in a 10% state, that's 50% of your small business when you sell it goes to taxes. Now again, I'm not trying to give a fear tactic here. That's cool, but that's what's on the table. All right, number seven, let's do ending of stepped up basis and ooh, I've got 12, I forgot, I've got 12 reasons here. This is why I like to adjust my articles after I do a live presentation. It gets my blood flowing here. Any major questions that we need to cover? We. Okay, all right. Estate tax, I've got to talk about that too. Okay, so stepped up basis now. Now check this out, people. Let's say your grandma died this year. My heart goes out to you. I'm sorry. Hopefully she had a great life. But let's say your grandma died and she had her own home. Or maybe she Had a little duplex down the street, and it was worth 400 grand. Now, Grandma bought it with Grandpa 20 years ago for 100 grand, and they paid it off since then, and it was paying rent to grandma for years. And okay, now if grandma was to have sold that during her life, she would have paid tax on 300 grand. Now, see, her basis was 100 and she sold it for four. Now, after 20 years, she would have probably depreciated the crap out of it. So it probably would have been about a $400,000 gain. Right, but that's grandma if she was alive and sold the property. Well, when grandma dies and you inherit it, maybe you're that lucky grandchild, the favorite grandchild, like a Billy Crystal and scared straight. So you inherit this 400 grand home, it steps up in basis because you inherited it. So it's. Now basis is stepped up. That's what it's called, stepped up basis to 400 grand. So now what's your tax rate when you sell or tax when you sell it the day after grandma died? If you choose to zero, no tax. Stepped up basis to the value on the day grandma died. Stepped up basis. Well, Joe Biden says no more. It's only for the rich. Okay, I get that. Rich own property and they sell it and they inherit property. But stepped up basis is a death thing. Someone in your family dies that's held a property or a farm or a ranch or a business and die, you steps up basis, family sells it, no tax. Which brings us to estate tax. See, the. When you inherit something, you don't pay tax. There's no tax for you. When you inherit something, the tax is on the person that dies. Now, right now, it's around 13 million. If you. Is your. In fact, I want to make sure we've got the. The right amount here. I always should have this handy. I'm going to put in the Unified tax credit. That's what it's called. 2020. All right, so the Unified Tax Credit, 2020. Sorry, I was a little excited there. 11,000. Five. Sorry. 11,580,000. Okay, so if Grandma dies, the IRS takes a picture. How much is grandma worth when she died? Well, she owned her home and she owned this little duplex. Grandma was worth 600 grand. All right, cool. Family gets stepped up basis. They sell a property, don't pay any tax. And since grandma made less than 11 million, she. Sorry. She was worth less than 11,580,000. No estate tax. She's below the exemption. Now, estate tax can be as high as 45% or more. When you get state estate tax in there, so it goes up and only the people that are worth $11 million or more have to deal with this. Now there's some ways to double that. It's called an AB trust and things like that, we help clients in that situation. But this, this estate tax issue really doesn't affect anybody unless they make more than 11 million, are worth more than 11 million 580 and the family gets to step basis. Well, here's the problem. Joe Biden says, too high. Trump raised it way too high. It should be around 5 million. Now some of you are like, I'm not worth 5 million. I ain't ever going to be worth 5 million. That's cool. But some of you are small business owners building a business you would love to sell, you know, could be the next Amazon, who knows, right? So you've got this business and it could be real estate, could be a farm, could be rental property. So if you're worth more than 5 million, which includes your life insurance and 401k and IRA and home and that tax comes into apply. So this affects business owners because when they die, this is where they. You've heard people say, I had to sell the family farm to pay the tax. That's a state tax. Well, he said, let's reduce it so it applies to more people. And that's okay. Again, some of you may go, you know what? If you're worth more than 5 million bucks, you can freaking pay up. All right, cool. All right, that's. Everybody's entitled to their opinion. Just want you to know that's the plan. So stepped up basis is gone. Estate tax exemption reduced. That's how we would say it. That's what it will say in my article. Now I'm going to just digress for one moment. Say, if any of you want to sign up for my weekly newsletter, it's free. I've never charged for it. I do a couple articles a week. My amazing partner, Matt Sorensen, my accounting partners, Liddell Air, Brian Brown, Rick Taylor, everybody contributes. We got tax strategies, asset protection strategy. And so you can get a little update every week with cool little small business strategies, Mark J. Kohler.com and there's links to the law firm, the accounting firm, blah, blah, blah. I've got a little Back to School special where you can get all my books, all my videos. Lifetime access for a couple hundred bucks or so. It's very affordable. Anyway, check that out if you want more information. And my article will be posted tonight on my website and it'll go out in the newsletter at 6am Eastern Time tomorrow. Okay, now let's go to our last three or four here. Okay, the end of QBI as we know it or should we jump to the 401k? Let's jump to the 401k. Some of you love to put money in your 401k. In the last month Joe Biden said, yep, only the rich really max it out. So they need to, they don't get as big a write off for a 401k. Oh my gosh, talk about, you know, dropping the shoe and silence in the room. You could hear crickets. The 401k is sacred land for so many people. Right. And a small business owner that makes too much money, he's going to say, yeah, you don't get a write off for your entire contribution. You're too wealthy, you can survive, deal with it. So 401k contribution reduction and or I'm going to say another way to say is reduced deduction. And so you probably would be able to put the way he phrased it, which was interesting. We don't have all the details on this. You'd still be able to put the money away up to the ma. There'd be a match from the company. You put in your amount. But if you made too much money, you don't get a write off for the whole amount, but you still can put it away. So it'd be kind of like a non deductible ira. Now there hasn't been talk, although the Democrats from time to time want to shoot holes in the Roth IRA and other issues. But we're going to leave it at that. He wants to reevaluate the 401 contribution and heaven help us if he wants to touch the backdoor Roth, which we all love. Go YouTube, BackDoor Roth, Mark Kohler, you'll freaking love it. All right. Now that's, that's a problem for a small business owner because my small business owners love to put money in their 401k and it's an important diversification because if you own a small business, I don't want you driving all the money back into your business. Some of you say, well Mark, that's where I should put my money. It's my best return on my dollar. Yeah, but it's the most. Do you want all your eggs in one basket? Pull out a little money, buy a rental property, Pull out a little money, put it in the 401k. Put out a little money, throw it in your Roth ira. Now, I'm still saying everything else. Put it back in your business. I'm good with that. I do a lot put a lot of money back in my business. But I've learned over the years that your business can really be. Look at Covid. Look at this pandemic. I had clients, their businesses were destroyed, but they kept the 401k. They kept their rental property. So good reminder, right? Okay, now he supports. Oh, okay, what did I say? Number 10. Okay, we did 401k, number 10. He supports a ban on all unessential. I don't know the list. He didn't say non compete clauses. Now, some of you may go. What are you talking about, a non compete clause? Well, small business owners, sometimes your biggest risk is one of your employees stealing your idea and starting a business down the street. Jimmy John's just settled a huge lawsuit because they had required all their drivers to sign a non compete. They said, if you drive for us, you can't open a sandwich shop for a year. It's not fair. They had some problems with that. Now, I understand we can't stop people from making a living. And we let the courts decide in each individual situation when it's fair for the business owner to have a non compete and when it's not fair because we're stopping an employee from being unable to start a business or have a livelihood. So he feels non compete classes, for the most part, 90% of them, are unessential and they should be removed. They should be banned across the country. That scares a lot of small business owners because it can create a lot of risk from one of your employees running away with an idea and starting another competing business down the street. Next, he supports. Now, for those in California, this rocked your world. There's about nine other states that are doing this now. They're trying to force subcontractors and saying you're really an employee. Now, who's got the big lawsuit on this? Uber. Uber is under a huge lawsuit from the state of California saying those are all employees. We want you to pay FICA on all those people. It would be millions, if not billions of dollars. It would destroy Uber. Now, you may hate Uber, you may say, they're all employees. I work for Uber. They're jerks. They should have freaking withheld. Right now they're giving all of their drivers a 1099. Well, this affected hair salons, barbershops, a lot of others. It's called an ABC test and California just adopted it. There's about nine other states. I'll put CA plus nine states. And this abc, excuse me, this ABC test starts to force people into this employee category. And you can't have a side hustle with a 1099. I love a side hustle with a 1099. I want you to write off your auto and the kids and the fam and dining and my cell phone and TVs behind me. This is a write off. It's a business. Well, if I'm an employee, drive an Uber. Nope, you're not a small business owner. It's my car anyway. But you gotta just know he supports the ABC test. And so for some of you that are wanting a 1099, and I would argue you want a 1099 so you can file a schedule C so we can get all those sweet write offs. That's, that's a good thing. All right, now I've only got one more and we're gonna wrap it up on this one. And this is a good one. And what's funny is that Joe Biden himself, and I've got an article here that I loved, that I shared with a number of clients just recently that talked about how Joe Biden himself was using this strategy. And this was in the Wall Street Journal. Good stuff. How the Bidens dodged payroll tax. Now let me tell you, this is important, everybody. This is. I saved this for last because it's a really important one. If you're a small business owner, you love the QBI deduction. You may not know what that is. 199A or QBI Qualified Business Income deduction. So here's how it works. Let's say you have an LLC and you have a small business. Not a rental. I'm talking about just a regular small business. Whenever you make profit. So you got your income. Sorry, you got your income here and you got your expenses. So income and expenses, your net, whatever that net is, you pay self employment tax of 15.3%. So if you net 100 grand, you're going to pay $15,300 in self employment tax, then you're going to pay fed, and then you're going to pay state. Now after all this, you get what's called a QBI deduction, which is a 20% deduction. So off the 100 grand, I get a deduction of $20,000 and I only pay tax on 80 grand. All right, that's cool. Good, good, good. But it cost me 15,000 self employment tax. All right. I don't know what that means. Okay, now, so we had a comment there. I was not scrolling properly. Okay, now that's my llc, everybody. Now this is important. Now if you're an S corp, and many of you have seen me talk about this before, if I net that same hundred grand, I might take payroll of 40 grand and take net 60 and this would be a pass through. Well, the beauty of this is I only pay 15.3% on this portion, which is around six grand. So I saved close to $9,000 saved. But look at my QBI deduction is only 20% of 60 grand. Ooh, that's only a $12,000 deduction. But look at this. This is a deduction where if I'm in a 30% tax bracket, I just save four grand. Well, I'm still saving $5,000 because the net benefit of the FICA savings is off the chart. Well, last year this was in the Wall Street Journal. Joe Biden in his S Corp. Joe Biden has an S Corp. I love this. I'll link to this in my article tonight. He avoided 500 grand in FICA taxes over two years. Over two years he made $13.3 million. That was his net. That's cool. Speaking books, whatever. So Joe Biden made 13 billion net and he took a salary of 750 grand. The rest he did pass through. Joe Biden himself saved 500 grand in self employment tax. He must have read my book. I love it. Love the guy. I've been teaching this for 20 freaking years. I have a whole chapter in my book and, and everybody that makes more than 50 grand a year should be thinking about an S corp. If you align an LLC taxed as an S corp, that's an S corp. But if you're an llc, you're not saving taxes. All right, now this QBI deduction right here, this 20% deduction, 20% deduction. Joe Biden says, no way we're getting rid of it. It's too expensive. I got more important things I want to pay for. Now there's been talk of he'll phase it out at certain thresholds, then he won't. It'll just be gone. He wants to get rid of the C corp, Big corporate tax rate that was at 39, that went down to 21. He wants to bring that back with a vengeance. So. Oh, well, whatever. That, my friends, is what's called the QBI or the 199A deduction which is 20% of your net income. If that was a whirlwind, you can go back and Watch this. And I've got articles on this. Just Google Mark Kohler QBI or Mark Kohler 199A. And I've got articles out there to help explain this. So in summary, Those are the 12 concerns with Joe Biden's small business tax policies. And for those that joined us late, I will say the four good things he's trying to do is he wants a true small business fund, true small business fund of $60 million. $60 billion for small businesses with less than 20 employees. All right. And I go, EES means employees, sorry. Number two, he wants to reduce burdensome regulations for certain industries, burdensome regs. And then he wants to do immigration reform so that you can, as a small business owner, hire more immigrants if you need to in your business. And then number four, he wants to support more funding for SBA and other organizations locally and regionally to help small businesses with education. So in summary, I know there's been some hate mail. That's okay. I am not trying to be anti Biden. I'm not trying to be pro Trump. I'm trying to be a small business owner just living in America, trying to put as much money in my savings account for the future, pay the least amount in tax honestly. And I love to educate small business owners. I want you to know that President Biden has a different agenda for America than small business owners. Building the economy, per se. He thinks that if you're a very successful, successful small business owner, you should even pay more in tax. That's the summary of it. I've got Washington Post, Wall Street Journal, the news articles go on and on. My article just go amongst many others, I'm sure. But if you like it, please share it. Don't give up, though. The American dream is still so powerful. I love it. I love small business again, my little Back to School special will put a link down below. Make sure you do that, Jack, please. Got a little Back to School special on all my education. It's a tax write off. And my books, you get a backpack, a workbook, a business plan, a strap plan, a marketing plan, 60 videos, 80 videos and lifetime access as long as I'm alive. So check that out. 250 bucks. And I think that would really help you out. I want you to save taxes. It helps the economy, in my opinion, for what it's worth. And there's a lot of good things President Biden's for or candidate Biden is for and a lot of good and bad with President Trump as well. So you, I hope can make an informed decision now, a little more accurately, now that you have a little picture into Biden's tax life. All right, now, any final questions you guys wanted me to throw? Address? Are we good? Anything? Okay, we're going to let it fly. My guys who have been monitoring. So thanks, everybody. Now, I'm here Every Thursday at 4 o' clock Mountain answering your small business, tax and legal questions. Also have an open forum radio show slash podcast next week on Wednesday. And you can get all that at my website. And I'll say it one last time, Mark jcohler. Com. So keep living the dream.