Here are some statistics on small businesses in the US from the Joint Committee on Taxation (JCT), a nonpartisan congressional entity.
The conclusion: The Obama proposal to let the Bush-era tax cuts on wealthy individuals (families and individuals making, respectively, more than $250,000 and $200,000/year) would affect only 3% of all small businesses paying taxes -- about 750,000 taxpayers. The 3% accounted for half the estimated $1 trillion in business income reported in 2011.
In testimony to the House of Representatives, the Director of the Urban-Brookings Tax Policy Center stated that 0.3% of S corporations had receipts of $50 million or more. That 0.3% of S corporations accounted for 34.0% of receipts and 26.8% of S corporations' net income. Another 1.7% of S corporations have receipts of $10-50 million. They accounted for a total of S corporations' receipts and 34.0% of net income. In short, 2.0% of S corporations account for 59% of receipts and 60.8% of net income. Only 0.4% of returns filed by S corporations, partnerships and non-farm sole proprietorships were filed by entities that made at least $10 million. They accounted for 59.8% of receipts and 42.0% of net income.
Background: Small companies often take the legal form of a "S corporation", which does not pay taxes. Instead, profits or losses are passed on to the S corporation's shareholders. The tax rate levied on those profits is the individual tax rate rather than the corporate tax rate. Sole proprietorships, partnerships and some limited liability companies are also incorporated as S corporations.
The JCT says that, as of 2005, about 1 in 9 S corporations (11%) were in retail trade, a category that encompasses the "mom and pop" stores. They held 12% of the total assets of S corporations and represented for 5% of partnerships. Those partnerships held less than 1% of assets. About 1 out of 7 (14%) of S corporations were in construction. The largest category of S corporations were in professional, scientific and technical services. The number of tax returns filed by "flow-through entities" has climbed in recent years.
The conclusion: The Obama proposal to let the Bush-era tax cuts on wealthy individuals (families and individuals making, respectively, more than $250,000 and $200,000/year) would affect only 3% of all small businesses paying taxes -- about 750,000 taxpayers. The 3% accounted for half the estimated $1 trillion in business income reported in 2011.
In testimony to the House of Representatives, the Director of the Urban-Brookings Tax Policy Center stated that 0.3% of S corporations had receipts of $50 million or more. That 0.3% of S corporations accounted for 34.0% of receipts and 26.8% of S corporations' net income. Another 1.7% of S corporations have receipts of $10-50 million. They accounted for a total of S corporations' receipts and 34.0% of net income. In short, 2.0% of S corporations account for 59% of receipts and 60.8% of net income. Only 0.4% of returns filed by S corporations, partnerships and non-farm sole proprietorships were filed by entities that made at least $10 million. They accounted for 59.8% of receipts and 42.0% of net income.
Background: Small companies often take the legal form of a "S corporation", which does not pay taxes. Instead, profits or losses are passed on to the S corporation's shareholders. The tax rate levied on those profits is the individual tax rate rather than the corporate tax rate. Sole proprietorships, partnerships and some limited liability companies are also incorporated as S corporations.
The JCT says that, as of 2005, about 1 in 9 S corporations (11%) were in retail trade, a category that encompasses the "mom and pop" stores. They held 12% of the total assets of S corporations and represented for 5% of partnerships. Those partnerships held less than 1% of assets. About 1 out of 7 (14%) of S corporations were in construction. The largest category of S corporations were in professional, scientific and technical services. The number of tax returns filed by "flow-through entities" has climbed in recent years.
No hay comentarios:
Publicar un comentario