Joe is a plumber in Toledo, OH. He is contemplating buying a two-person plumbing business that has an income of $250,000. He would therefore be impacted by an increase in the marginal rate for those who make over $250,000 a year, supposedly. According to Salary.com, 90% of plumbers in Toledo, OH, make under $63,921. What Joe will learn once he actually buys the plumbing business is that individuals are taxed on net profit, not gross income which is obviously the number Joe is using.
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