Re: THE GO SCHNEIDS THREAD (was about bk, but he busto-ed)
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Mike pays taxes, then he just cuts up precentages. people expecting to get money pre-tax are idiots.
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How do you avoid double taxation though? As in, Mike pays the taxes on the money when he recieves it. Then he distributes to his backers. This is not a gift, it is money the backers made from a business dealing. Therefore it would seem they have to pay tax on it as well. The only way around this that I can see is for Mike to not pay taxes on the pre-tax portion by deducting it as a business expense when he pays it out to his backers, and then they pay the tax on it. I can't see how they can avoid paying tax on it.
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