Quote Originally Posted by daihashi
It's a deduction; but for instance if you pay someone 35k... that doesn't equate to 35k back into the pocket of the business or even necessarily take 35k off their net income.
Well, of course it doesn't put the $35k back into the pocket of the business owner. That is the cost of doing business, and there is no tax plan that could change that, including zero taxes. And I think if they pay a $35k salary, it DOES take $35k off their net income.