With income taxes, self-employment tax, state business & income taxes and 3 kinds of local business taxes, I'm losing more than 35% of every dollar and I'm not even making enough to reach the higher tax brackets.
About "little people" in general, "little people" don't form C-corps, they trade under their own name (sole proprietorship), a DBA (sole proprietorship), or as a pass-through LLC or S-corp. There's no distinction between a company's income and your own, so you don't get to decide what is salary and what is profit, they're one and the same on the tax return.
Actually, I was referring to the assertion that you're in the 35% tax bracket when your salary hits ~375K. There is a lot of confusion in this area, especially when things like pass-through entities (like LLCs and S-Corps) are involved.
Keep in mind that salary income from an LLC or from an S-Corp is also taxed by Soc. Security and Medicare (the dreaded ~15% self-employment tax) while capital gains from an LLC/S-Corp isn't necessarily subject to it.
My point (and I do have one) is that the tax picture is considerably murkier when there is a business involved, be it a small one or a large one. Income taxes for salaried workers are a relatively straightforward matter. Income taxes for owners of businesses are another thing entirely. Deductions for business expenses are just a small part of that circus. The rules for businesses are a BIG part of the tax code and responsible for much of the shenanigans. If you think paying $250 for H&R block to prepare your return is steep, try paying something like $15-$30K for a moderately complex return for an LLC.
(NOTE: My next-door neighbor just retired from the IRS after 30 years doing small business audits and my ex-fiance is a tax accountant. I've also owned and filed taxes for S-corps and LLCs as a principal. Shit just got real.)
I pay my accountant $275 to do the returns for my LLC. I keep my own books the rest of the year. I've been audited by the IRS and owed no money after the audit. Having a business doesn't automatically make things super complex. It's only complicated if your business is complicated.
Do you have employees? How about lots of capital assets with varying depreciation schedules? Do you operate in a business that gets different tax treatment for operating in a special zone? Do you get income from many states?
Your situation isn't typical. In fact, it's probably an outlier. I know performers who have to file 43 different state tax returns.
Nothing shocking or new, but the video does a good job of tying all the steps together for how (drug) corporations can reduce their tax load.