Job creation reduces small business tax   The "fiscal cliff"
negotiations center on the potential effect on job creation if
the tax rate for personal incomes over $250,000 would increase
(by about 2 percent). As someone who operates a small business
and reports business income on Schedule C of my personal federal
tax return, I am confused about the arguments against increasing
the tax rate on top earners. Do folks who claim that raising the
rate would hurt job creation actually know how Schedule C works?
It's basic math: (Business sales income) minus (business
expenses) equal (net business income). Increase your expenses,
such as hiring a new employee, and you'll reduce your taxable
business income. This net business income then goes on the 1040
along with wages, interest and dividend income to figure total
personal income. Lastly, apply the standard deduction for
dependents to determine taxable income.  If my family business
was so successful as to make over $250,000 (after expenses) in a
year, first, I'd b