Joe the Plumber dreams of buying a business that makes a little over 250K, and rightly wonders whether Obama will tax him more than McCain. I am sure “Senator Government” will indeed raise taxes and regulation, but in truth, if Joe knew what I know, he might reconsider the whole thing, no matter who gets elected.

Running a small business in America is already excruciating.

Start with the money. Contrary to the attacks of Jackass Joe Biden, there are plenty of plumbers and other small business people who make over 250K gross. But what you keep from that if you play by the rules will usually be about 50K. That would be a 20% margin, (um, that’s profit Mr. Biden). And as your gross revenue goes up, normally your margin goes down.

So, all those dirty, rotten, greedy business people “making” 250K, are really only keeping around 50K. That’s $962 per week before taxes. Hate to break the news to Joe the plumber, but that’s only $24.00 per hour. I don’t live in Ohio, but I bet plumbers there make pretty close to that amount, working for someone else.

BUT WAIT! It’s only $24.00 an hour if he works a 40-hour week. Ask ANY businessperson if they work only 40 hours per week. When they stop laughing, you will find 60 hours is probably below average. But 60 hours makes the hourly rate $16.00, BEFORE taxes.

$16.00. Hey Joe Biden, know any plumbers who make $16.00 an hour? Anybody think Biden’s ever personally hired a plumber?

So most likely, when Joe (the plumber) starts out, he will take a pay cut. That’s despite the fact that he will now have TWO jobs. That’s where the 60 hours comes in. Job one is still being an actual plumber in the business he just bought. It’s too small for him not to work full time, so figure 8-10 hours a day. Job 2 is- Run the business (in your spare time). That is; answer phones, make sales calls, create bids, plan jobs, order materials, hire employees, supervise workers, maintain equipment, manage various insurance policies, especially workers comp, pay bills, customer service, make payroll each week, and collect payment from customers, just to begin.

But the real joy of business is the next layer, dealing with the government. Start with a Federal Tax ID; then get your various business licenses, which usually renew annually. Check out zoning requirements and environmental laws. You will have forms for state and federal taxes either quarterly or monthly. You will have withholding; state and federal, social security, Medicaid, unemployment, etc., and deposits, reports and payments to be filed monthly or quarterly. God have mercy on your soul if those reports are late or incorrect. More forms when someone claims unemployment; (yes, the guy you fired for stealing the copper), sometimes government hearings for same. Maybe you will meet your states labor board. You will have to collect back child support, and tax garnishments of deadbeat employees. They will then quit, and apply for unemployment. More paperwork. Next, deal with OSHA, DMV, DOT, on and on and on. I’m not exaggerating, there’s much more.

After all this, its income tax time. If your lucky, you can keep keep half of what you finally can call income. That is, half of  that 15-20%.

This is how it is TODAY! It’s hard for me to get really frightened about Obama’s coming “socialism”. I happen to know we’ve got it already. Joe the Plumber, be careful what you wish for.