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TaxProf Blog: Tax Policy Center Says 471,000 Small Businesses Would Face Tax Increase Under President Kerry: "Tax Policy Center Says 471,000 Small Businesses Would Face Tax Increase Under President Kerry
Tuesday, October 5, 2004
The Tax Policy Center has published data on the Kerry Tax Plan and Small Businesses. Here is the summary:
President Bush and Senator Kerry have been sparring about the effect of Senator Kerry's tax plans on small businesses and jobs. Because of data limitations, it is impossible to tell with certainty how many employers would face tax increases. Table T04-0144 sheds some light, however. The table shows that 995,000 individuals who report flow-through income or loss on a schedule C or F, or active income from a partnership or S-corporation on a Schedule E would pay higher taxes under Senator Kerry's plan in 1995. (The Treasury Department's estimate is 940,000.) Only about half of those returns report that that income is more than half of all compensation, and only 71,000 claim a deduction for wages and salaries on Schedule C. Based on any of these measures, less than 5% of small business returns would face a tax increase."