In the 1820's, the American System was aimed at improving infrastructure - to include a transportation network to grow and thrive economically. Today, the American System appears to have one goal: kill the entrepreneur.
The concept of being an independent contractor has always appealed to me - being my own boss, setting my own pay and hours. Though, I never knew how to get started. With the current global economic conditions, I decided it was time that I found out. I eventually came to the oDesk Marketplace, a place to sell my services as a virtual assistant. Within minutes, I had placed several bids for jobs, and, within, hours, I had my first interview. The interview went well, and I accepted the job.
Being in the 25% tax bracket (I still have a 9:00-5:00 job for now), I knew that for every $10 I earned, I would have to set aside $2.50 for tax payments. However, I wanted to make sure I educated myself thoroughly on the matter, so I delved further.
That's when I found out about the Self Employment Tax . . . 15.3%. This is on top of the 25%! I was outraged. This brings my tax liability to 40%. So, now, it seems that for every $10 I make, I only take home $6.
This completely crushes the entrepreneurial spirit that this nation was founded on. How can we expect innovation to thrive in a system such as this?
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