Quote:
Originally Posted by tis
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.
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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?