[Ike Bana]

Originally Posted by whell

These are for you, Ike, and also for John.

http://www.epi.org/publication/ib349...-rates-filers/

"Over the past few decades, both the proportion of firms organized as pass-through entities and their share of business receipts have increased, from 83 percent of firms and 14 percent of business receipts in 1980 to 94 percent of firms and 38 percent of business receipts in 2007 (CBO 2012b). These shifts have been driven by changes in the tax code—such as lowering the top marginal income tax rate below the top marginal corporate income tax rate—as well as movement in the economy from manufacturing toward providing goods and services.

Under the definitions employed in the current debate over the expiring Bush tax cuts, any taxpayer who declares any income derived from these pass-through income flows is considered a “small business.” There are obvious problems in equating a pass-through entity with a small business in this context."

Next. I don't know what you're up to referencing a "liberal" think-tank, but thanks so much for your support of my argument.

For instance right there in the title...

‘Small business’ and top marginal rates.
Tax filers affected by proposed rate increases are not necessarily small, or businesses, or job creators.

And...

- The way that small businesses are defined for tax purposes has been put to use in this debate in a manner that is misleading. The default definition of “small business” in the tax debate can often identify many entities that are neither small nor even businesses.
- Even under this broad definition only a fraction of small businesses would be affected by tax rate increases at the top.
- Small businesses do not represent a significant share of job creation, though new businesses do.
- Small businesses already enjoy preferential treatment in the tax code through provisions that favor the way they are organized and operate.
- The best way to boost American small businesses is to address the demand shortfall that keeps unemployment high and to strengthen the social safety net in ways that can encourage entrepreneurial initiative.

So...much obliged.