Hello everyone. It's been about a year and a half since my last post here. During that time, I've been working a lot on my new startup company, which I'm blessed to say has been tremendously successful. I run the startup with my wife, out of our home which gives us a lot of time to spend with family. The process of starting a company has been incredibly rewarding. We get to be our own bosses, we make far more than we ever could on a salary, we get to hire and provide good-paying part time jobs for over 16+ individuals now, and the best part... (at least for me) is that I feel like I'm putting a real 'dent in the universe.' Every day I go to work, I get to create products/services that are loved by our customers. Products/services that actually improve people's lives, and that they're glad to pay for. The sheer amount of customer elation we get to experience when we go to tradeshows, through email, or over the phone, is incredibly rewarding and easily my favorite part of the job. Anyway... As I stated before, the business has been very successful and this year we are expected to GROSS ~$1,000,000 and NET ~$500,000 after expenses and before taxes. As you can imagine, our tax situation has changed considerably since both my wife and I were working on salaries previously. Today, we actually met with our accountant and tax consultant and discovered that just our Federal tax rate was 39.6%, and our effective rate (what we'll actually pay after all brackets are considered) is 34%. In addition to our Federal rate, we're also on the hook for 9% state income tax, plus property taxes, local taxes, sales taxes, and more. After doing the math, I've calculated that in 2014 we'll be paying an effective rate in excess of 60% of everything we earn this year to the government, leaving us with ~$200,000 after all is said and done. This is more than we spend on labor for all of our great employees, this is more than we spend on raw materials, and this is more than we make ourselves as the business owners. Of course the government provides certain services (with the vast majority of dollars going towards social services and 'defense', and a much smaller percent going towards things like roads, police, etc.) but does it seem right to anyone that the government's fee for these services should entitle them to a larger percent of the company's earnings than the owners themselves and the workers who make it all possible? I guess what I'm wondering from the community here is: Do you think its moral for government to legally require by the force of law a business like ours to pay over half of their earnings in taxes? Do you think the actual substance of products/services provided by the government justifies such a fee? If an effective rate of over 60% is moral in your opinion, is there a percent where you believe it becomes immoral? If they confiscated 90%, would that be moral? 100%? Interested in everyone's opinions! I hope this can be a constructive dialog - and who knows, maybe someone here has some good tax strategies I can implement in the future?