LLC's Salary's paid come before Profits are declared

Ref:  Rep. Bill Johnson’s editorial on 03-19-10 Laconia Daily Sun.  Does he want us to believe that because the State allows that a business owner can deduct from his business’s profits “reasonable compensation” without ‘incurring’ a DRA review; that is with the provision that the owner actually provides person services to the company, that makes everything just hunky-dory.

That the Congress passed the Bill imposing the tax as they did, and now he and others refuse to repeal it on the grounds that they need to study it, is just good standard practice all-around?

How is it that the State now requires schools to notify support workers of impending layoffs yet he and his gang feel it un-necessary to hold a hearing and notify LLC’s of an impending tax to be levied on them.  I must say I’ve never owned or run a business, I’ve only worked at them, that is a past tense as businesses have laid off and are not hiring.  Ignorant as I am it does seem to me that before a business declares a profit all debt must be paid and that includes wages and salaries.  I must then assume that honest as he is in saying that reasonable compensation is in no way an attempt by the legislature to tell business owners how much money they should make.  And again, that is assuming the word ‘make’ infers their personal salary, that being the case then their salary may be what ever they deem their value to the company is.  Rep. Johnson’s word is on that and he also allows them to further deduct an additional $50,000.oo from the business’s ‘profits’ before their 5% tax kicks in.  

The premise for the tax goes back to a 1923 tax on interest and dividends that individuals make from their investments.  In this case the ‘new found investment’ is the business, an LLC.  Could not the case then be made that Lawyers, Doctors, including Physiologist et-al, as well as any and all ‘Professionals’ such as Realtors and Insurance Salesman all having invested time and money into their professions realize dividends in the form of ‘reasonable compensation’ and in the rational of the State Legislators “in all fairness” also pay the 5% tax which the LLC’s now pay?

Not to get off the subject but that he votes that it is okay to smoke just a ‘little’ pot but supports heavily taxing cigarettes to encourage people to stop smoking, seems a bit inconsistent.  

GW Brooks