Why business owners pay less tax than W-2 employees

Name: Why business owners pay less tax than W-2 employees
Duration: 39 s
Description: W-2 income has limited deductions, but a side business lets you write off more expenses and save more for retirement.

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Earning a W-2 wage means your taxable income is basically locked in—what you make is what you pay on. TJ explains why adding a side business changes the equation, from bigger retirement contributions to write-offs that shrink your bill.

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