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The Plight of the American Self-Employed Worker

It takes a leap of faith to make the decision to go to work for yourself.


Fire your boss, so to speak, and become him.  Or her.


You have to believe in your ability to do something well enough that other people will pay you for it.


Either create something, or perform service.


I know that growing up the fixed idea my father attempted to instill was to get as much education as possible, then go to work for someone that would pay top dollar for educated people.


Sounds great. 


Along those lines, the idea of exercising one’s imagination or creativity was seen as being for “other people” that “got lucky” or “knew the right people.”


People with money were viewed as having undue influence, and must be at some level amoral if not downright criminal. 


When you grow up like this, it ingrains an idea which I now know is referred to as a Limiting Belief.


I capitalized that on purpose.  Limiting beliefs are a bitch. 


Especially when all you have to do to make money, in a way that is enthusiastically accepted by the large majority of folks, is to get through an interview process and go to work for somebody else.


Supporting them in their version of the dream.  But hey, you know how much you’re going to make, generally, and you have the warm fuzzy comfort of a paycheck.  Sweet bliss.


Oh, and also the part I like to talk about, taxes.  Taxes are done for you, basically.  Your federal and state income tax is withheld, and your social security and Medicare is done for you without any effort on your part. 


All you have to do is over-withhold enough to file for a refund every February or March, and wonder why so many people make such a fuss over tax season.


The work of getting the return done sucks, but hey, free money!  Tax season rules! 


Now, if you follow me at all you know what I have to say about large refunds.  In brief, you’re letting Uncle Sugar the American Piggy Bank hold your money for you, and earn your interest.  Search back in my blogs for more on this subject.


We’re talking about you, Mr. & Mrs. & Ms. American Self-Employed Worker.


You don’t get your “sosh” and Medicare taken out automatically, do you?


As your business scales, and you’re happily realizing that you DO have the skill or talent necessary to feed yourself and your family by working for yourself you begin to notice that you’re getting your butt taxed off.


This is not a liberal thing, or a conservative thing.  This just is.  People on both sides of “The Aisle” have been debating this since FDR, and trying to blame one ideology or another doesn’t get the Common Man or Woman very far.

You work hard, you go to do your taxes come tax season, you do the best Schedule C Business Income form possible, and like an evil magic trick conjured by foul sorcery you owe two different kinds of tax.


It sneaks up on you.  Especially if, in your first year you ended up reporting a loss after necessary expenses.  Loss returns don’t generate tax, so you remain blissfully unaware.


Then you make enough to where you see about $1,000 or so in income tax, and halfway down the second page of the 1040 there’s another several thousand in tax. 


It carries down to the amount you owe.


You find yourself hitting up your savings to pay for it, or even going on the IRS website to apply for an installment agreement.


Sound familiar?


Is this disturbing situation what you thought the American Dream would be?


The plight of the American self-employed worker is simply this:


We really don’t learn enough about this in high school, where we all should get at least an introductory course in taxation and household finance. 


I didn’t mean for this to be a 10-minute infomercial read, but I woke up this morning with the idea in my mind that we can teach our children well in this subject.


Of course, there is help available. 


I am willing, and eager, to talk about it, and I’ll talk to you the first time without charge. 


Schedule something with me if you liked (or more likely DIDN’T like) this.


Fall is almost upon us, by the way.  May it be beautiful and transformational for you and those you love!


~~ Schedule Time with Me ~~

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