The Tax Foundation has issued an analysis of the impact of both Presidential candidates' tax proposals on pass-through entities (sole proprietors, partnerships, LLC, LLP, S-corp). Their analysis finds that roughly one-half of the $30.1 billion in higher taxes from rolling back the top tax rates to higher levels would likely fall directly on the backs of small business owners.
You can read their entire analysis here.
Why we are even considering adding tax disincentives to the only sector in our economy generating significant growth and new jobs (i.e., small business) is chilling.
I agree 100%. Furthermore, I think that the potentially increased tax burden in Entrepreneurs is particularly concerning in times when many people loosing their jobs are resorting to entrepreneurship as an alternative.
Increased risk had always been a detouring for many individuals considering running their own business. Facing today’s job insecurity in Corporate America, such risk has seemed to fade for many people who don’t have much more to loose. What will happen if the options continue to shrink?