Wanted to understand/confirm for someone getting business income and/or w2 salary . Do you pay marginal taxes for everything combined . Only advantages in tax perspective is deductions in business income . Anything else which stands out in taxes , if not , you are still subjected to marginal taxes for any last dollar earned . Asking if it is worth to have any side business , other then getting benefits of deduction , if there is no great margin
So basically when someone says we are paying less in taxes for business income , I believe they just meant taking extra deductions and nothing more .
People don’t always say things that make sense. It’s hard to reconcile that statement with reality.
You always pay marginal tax rates. Your (incorporated) business always pays a flat tax. Same as above poster. Just more succinct.