About how much do business pay for taxes based on income?
Answer:
It depends on how the business is classified. Some are flow through entities which the income is taxed on the individual and are subject to individual tax rates.
Major corporations are typically taxed at I still think 35%. However, it's not just accounting net income multiplied by the rate. Accounting rules and tax rules differ in many ways. You may be able to expense on your income statement today that the IRS won't let you for that years taxes.
Those situations create deferred tax assets and liabilities which are fun topics to deal with in accounting.
I think it is 33% minus your expenses but if you have employees then you have to pay employee tax also its crazy.
It is a percentage after all of the deductions. Herein lies the key, deductions vary by industry. For example, in the oil industry, ther are so many deductions that they not only don't pay any income tax but actually get refunds from the government. This has been going on since the early 1960s and is obscene!
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