In 1935, the self-employment tax topped out at $60. Those 1935 lawmakers must be twirling in their graves with the new rules for 2006:
A $14,413 self-employment tax that comes from the 15.3% rate at the new $94,200 base.
A 2.9% tax that applies to all self-employment income in excess of the base amount.
You know the expression “Don’t let the camel’s nose get under the tent.” It applies here. Look at what has happened to self-employment taxes since they first ... Log in to view full article.