Taxed to the Max
Is your state ripping you off?
So what? Well, that was my first reaction when a friend told me I should reconsider my plan to move to New Mexico because, as he put it, "the gross receipts tax will pick your pocket clean of everything but lint." The bottom line: New Mexico takes your gross, grabs its percentage and calls it a square deal.
Is it? Not when you cut your gross in half once ordinary, honest business expenses are deducted. That's the norm for me, and, plainly put, my gross might be $150,000, but by the time I finish taking Schedule C deductions, that amount has dwindled down to, say, $75,000, which is the portion the IRS wants taxes on.
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