Small businesses are allegedly the backbone of America, and I feel these tuition support programs overlook this segment of the middle-class.
Small businesses are allegedly the backbone of America, and I feel these tuition support programs overlook this segment of the middle-class.
I dont think this was an oversight or mistake. I think the expectation was that yes, people should sell assets if they have them .
If the business is worth enough then selling it can replace all the income you would have ever gotten from it. It's not as simple as "income goes away". The specific numbers make all the difference.
Normal US tax law that most people fall under says no, stock itself is not income. It's only taxed at the time of sale. If you ask for mark to market taxing then any increase in market value during the calendar year will count as income -- even if you didn't sell anything throughout the year. But usually those people are drawing a direct income from trading.
I think the idea is that Yes, the expectation is for people to make actual sacrifice before they qualify.
It’s an all or nothing thing. The business needs all its assets to function, and shouldn’t be considered any more than for its income potential.
It's not equivalent to making all your income off one rental and having to sell it, but it is closer to that. If you sell it, you have no income now. But a small business also creates jobs and provides novel value to the community, so even more is lost than just a single income.
I claim we've had a lean few years, as we had to replace some aged equipment. I'm working all the hours god sends and only making $30,000 a year. There's also, uh, inflation. Market volatility. Climate change. Rising fuel prices. And I'm really worried labour costs are about to rise under this new government.
I also claim we can't sell any of the land without undermining the commercial viability of the farm; and the land would be difficult to sell profitably, because anyone except me and my immediate neighbours would have to travel a long way to farm it. And the remainder of our capital is tied up in crops, which obviously we can't sell until harvest.
On the other hand, it's an almighty coincidence that I needed to replace my tractor, my combine harvester, my skid steer, and my truck all at the same time, just as my kid turned 17. And that I just planted all those apple trees, hops and asparagus that I won't be able to harvest for a few years.
And yet - should MIT be in the business of second-guessing how farmers run their farms? Should my kid be denied a scholarship because some desk jockey in Cambridge thinks he knows the asparagus market better than I do?
You have parents A, B and C.
- Parents A own a small business.
- Parents B sold their small business two years ago, and put the money in the stock market.
- Parents C just scrimped and scraped and over the years saved up money equal to parents A and B.
I’m not sure why you’re so hellbent on giving specifically parents A a free pass. Why the unequal treatment?