Joe the "plumber"

[Squandered Halfpints]

I'd like to get YE's perspective on this 'Joe the Plumber' and make sure we are all interpreting his situation correctly, without all the propaganda and BS rhetoric that is being twisted to fit conservative agenda. This one topic has switched a good amount of left leaning independant votes, to the right. Based purely on misunderstanding of the Federal Taxation structue of small businesses. It seems like Joe plumber, the media, McCain, and even Obama (based on the answer he gave Joe), doesn't understand exactly who's taxes will be raised.

Here is the full 'Joe' interview:
YouTube - Joe the Plumber ☆ "The Whole Conversation Live"

I want to quote one part of Obama's answer, because either he has no idea what tax rate is being increased, or I don't.

"if your revenue is above 250 (thousand)..." -Obama

Who's revenue, Joe's AGI????? Revenue is such a broad term, and they both kind of shrug it off. If this 'plumbing company' joe plans to buy is registered as a sole proprietorship, parternership, LLC, or S-Corp; then this 'revenue' they talk about would have to be Joe's AGI. If this business he plan to buy is reg. as a C-corp, yes. he may pay a higher tax rate on "revenue" or (earnings before taxes (EBT) = sales - COGS - interest). Which brings me to my next quote.

"if I buy another truck, add something else to it, you know build my company, I'll get taxed more for fullfilling the american dream."

Umm.... No Joe, you'll get taxed less. If you reinvest your profits back into your buisness offsetting your businesses revenue and lowering you net income (i.e. taxable income), you'll get taxed less. Joe, I'd stick with being a plumber because obviously you don't understand the concept of (revenue - expenses = $$$).
Yes, I know, it's a very complex formula.