For Subscribers

Taxed to the Max

Is your state ripping you off?

By Robert J. McGarvey

Opinions expressed by Entrepreneur contributors are their own.

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.

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:

  • Digestible insight on how to be a better entrepreneur and leader
  • Lessons for starting and growing a business from our expert network of CEOs and founders
  • Meaningful content to help you make sharper decisions
  • Business and life hacks to help you stay ahead of the curve

Related Topics

Editor's Pick

The Dark Side of Pay Transparency — And What to Do If You Find Out You're Being Underpaid
Thinking of a Career Change? Here Are 4 Steps You Can Take to Get There.
A Founder Who Bootstrapped Her Jewelry Business With Just $1,000 Now Sees 7-Figure Revenue Because She Knew Something About Her Customers Nobody Else Did
Everything You Need to Know About Franchise Law
Business News

Book Thief Evades Prison Time and Will Pay $88,000 in Restitution

Filippo Bernardini pleaded guilty to stealing more than 1,000 unpublished manuscripts in an elaborate phishing scheme.

Employee Experience & Recruiting

Job Listing 101: Online Hiring Basics

A job listing is often the first interaction job seekers have with your company. Your business can ace online hiring by creating an effective job listing that attracts qualified candidates.

Business News

'A Serious Concern': Journalist Paints a Harrowing Picture of What's to Come With Twitter Blue After Her Account Is Cloned

Jacquelyn Melinek alleged that a Twitter account posing to be her copied all of her information — then blocked her.