Research Report Small Businesses and Marginal Income Tax Rates
William G. Gale
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A common claim in recent tax policy debates is that raising or cutting the highest income tax rates would disproportionately affect small business. But few small business owners face the highest marginal income tax rates. Business income is not the dominant form of income in any positive tax bracket and although many returns in the top two brackets have at least some business income, few returns have most of their income from small businesses.
Research Areas Economic mobility and inequality
Tags Income and wealth distribution Small businesses