NEW STUDY SHOWS TAX REFORM IMPACT ON SMALL BUSINESS
22.9 million small businesses file taxes as individuals
This week, an Ernst & Young LLP study provided much-needed details on the number of small business owners who pay taxes as individuals. Entitled, “The Flow-Through Business Sector and Tax Reform,” the study shows that 83 percent of 27.6 million flow-through entities are small businesses. S-Corporations, Partnerships, and Sole Proprietorships make up 97.2 percent of the businesses in the United States. Only 2.8 percent of establishments are incorporated.
The study is a wake up call for those who believed tax reform should focus solely on corporate rates. Some proposals for corporate tax reform include narrowing or eliminating many deductions and credits available to tax payers who file as individuals. Authors Robert Carroll and Gerald Prante predict that approach would amount to an 8 percent tax increase for small businesses.
View the complete report at: http://tinyurl.com/66zp8kv
For information on the S-Corp Association, visit http://tinyurl.com/5rrs5nv
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The Small Business Coalition for Regulatory Relief (SBCRR) is a coalition made up of small businesses and supporting organizations that are interested in federal regulatory developments. SBCRR provides coalition members with regular updates on regulatory proposals and opportunities for small business to provide input that can positively impact final agency decisions.
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Contact:
Tom Sullivan
202.545.2909
tom.sullivan@nelsonmullins.com
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