Proposed tax on $250,000 really means tax on $400,000

Obama has explained it, but few understand it.

There is a big difference between gross income and net income for a small business or for anybody for that matter...that includes Joe the plumber.

Obama will apply any additional taxes on NET income, not Gross income.

For those of you that own a small business, you clearly understand. For the rest, here it is. If your business generates, for example, total annual revenues of $400,000, you will not be taxed anything on that amount under the Obama plan. You will have the right to first deduct your business expenses, (rent, salaries, etc) and assuming an expense factor of 37%, you will net around $250,000. Then you will be taxed under the Obama plan.

So, Joe the plumber, (who IS full of shit) would have to worry only if he made more than $400,000. Not a worry he is likely to have for maybe even his lifetime.