Thread: Tax Question?
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Old 03-16-2011, 09:23 AM   #14
DickR
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Quote:
Originally Posted by tis View Post
The BPT is a tax on the PROFITS a business makes after expenses. The BET was instituted really to get professionsals (doctors, lawyers etc.) to pay a tax on their salary. An owner of a business pays BET on his/her salary, so they pay on profits AND their salary. BET is really like an income tax for those who work for themselves.
It seems then that in NH most of the self-employed pay a state income tax in the form of BPT, while those who work for someone else don't. A man's employer would deduct the expense of the income paid to the employee and pay BPT/BET on what's left. Is that right? That sounds like a disencentive to starting one's own business. I hope I have that wrong.

Since no filing is required for BPT if that income is less than 50 grand, I presume that is the "standard deduction" beyond which BPT is paid. Is that so?
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