----- Original Message ----- From: "Craig S." To: Sent: Monday, March 04, 2002 2:33 PM Subject: Re: Consulting Fees > > ----- Original Message ----- > > From: "Derek A. Neighbors" > > To: > > 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 > > ________________________________________________ > See http://PLUG.phoenix.az.us/navigator-mail.shtml if your mail doesn't post to the list quickly and you use Netscape to write mail. > > PLUG-discuss mailing list - PLUG-discuss@lists.plug.phoenix.az.us > http://lists.PLUG.phoenix.az.us/mailman/listinfo/plug-discuss >