Again that is a generalization, as I am the CEO and I certainly don't get that kind of compensation! We could move up an income bracket if we terminated our employee's position, but that would mean working 50% more hours.

Michigan has a new tax called the Michigan Business Tax, which I covered in depth in the other thread. It taxes businesses a percentage of gross sales AND a much bigger chunk of profit. Realistically, this combined tax is approximately 10% of our net profit. Plus we have to pay a state unemployment tax, federal unemployment tax, social security and medicare taxes on our employee wages. And since the the Michigan Unemployment Trust fund is running in the red, they added another tax supplement to help bolster the budget. What's the best way to reduce those taxes? Cut employee compensation and cut the number of employees. Sounds like a great way to promote business in Michigan, right?

Then, once we receive our net profit, we are taxed on it again, both state and federal income taxes.

Then once we spend what is left, we pay 6% sales tax.

What's left? Not much.