Consulting Fees

[Nancy Sollars]

----- Original Message -----
From: "Craig S." <castone@getnet.net>
To: <plug-discuss@lists.plug.phoenix.az.us>
Sent: Monday, March 04, 2002 2:33 PM
Subject: Re: Consulting Fees


> > ----- Original Message -----
> > From: "Derek A. Neighbors" <derek@gnue.org>
> > To: <plug-discuss@lists.plug.phoenix.az.us>
> > Sent: Tuesday, March 05, 2002 7:07 AM
> > Subject: Re: Consulting Fees
>
> >
> > >
> > > Based on these numbers anything more than 80 an hour is HIGHWAY
robbery.
> > >  As you would only be working half a year to earn 60,000 or if working
a
> > > full year making 120,000 with full benefits etc included in the
> > > calculation.  I just ask that you re-evaluate bagging on 'the
microsoft
> > > tax' if you are charging more than 80 an hour and ask are you charging
> > > 'the consultant tax'?
> > >
> > > ;)
> >
> >
>
> hmmm  first off employers contribute more than 10% of wages to taxes, 10%
is almost swallowed by FICA or whatever the heck it is called now.
> Then their are unemployment insurance fees, Federal and State matching
contributions, etc. etc. etc. When employed as a consultant YOU get to
> pay all this. One can voluntarily forego the FICA route but this knocks
you out of the running for social security when you retire and
> Medicare/Medicaid as well I believe (not sure on that though). Seeing as
how I have been contributing to social security for about 20 years
> now I am unwilling to ditch it (I have a sizeable amount built up and I
already qualify for benefits) even though it may not be there when I
> am supposed to retire around the year 2035.
> The second point is that whatever money you make must sustain all your
overhead expenses. These include transportation, fuel, lodging,
> equipment, etc. Guess what, all those are taxed to which means you need to
make up that loss somehow and the consumer is it.
> Third you need to make enough to keep your wallet going through the bad
times (this includes the taxes, just because you go without money
> doesn't mean the government isn't going to without money).
> Now we can more properly assess the worth of a person's services. With all
this front end crap to deal with one needs to charge a lot of
> money to make any money. I figure if a person working for themselves
grosses $75 an hour they actually take home around $15-$20 an hour.
> Pretty big discrepancy eh? Still think taxing those evil corporations is
going to lessen your tax burden. As you can see, taxes increase
> overhead which increases operating costs which get passed on to the
consumer. Don't like then start going for lower taxes and a whole lot of
> things will cost a whole lot less.
>
> I guess this turned into a anti-taxation rant but it wasn't meant as such.
Just a matter of fact way of evaluating operating expenses and how
> they get passed on to consumers.
>
> Craig S.
>

One flaw with low taxation is that how is the government ment to jump start
the economy with little or no funds ( if none is paying taxes or little at
best ) surely any big survival packages put forward by central government
will just be a big plus to the already spiraling US national dept.

Nige

>
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