Tax cuts

November 15, 2010 8:39 AM

How many small business owners earn more than $1,000,000 a year in taxable income?

I know "small business" may not be very well defined, but I'm asking this in the context of the tax debate in the US, if that helps. Sources appreciated.

Not trying to bring the debate here, of course. Thanks!

posted by Chris4d to Law & Government (3 answers total)

Best answer: Less than 2%:

"Less than 2 percent of tax returns reporting small-business income are filed by taxpayers in the top two income brackets -- individuals earning more than about $170,000 a year and families earning more than about $210,000 a year."
posted by idb at 9:24 AM on November 15, 2010

Note that the tax debate that invokes the figure of "$1 million" with regard to small businesses is not about income taxes, but about estate taxes:

http://www.usatoday.com/money/perfi/taxes/2010-07-21-estatetax21_CV_N.htm.

And, the Wikipedia:

http://en.wikipedia.org/wiki/Estate_tax_in_the_United_States.
posted by chengjih at 11:12 AM on November 15, 2010

Best answer: You might enjoy this Slate series on the division of income in the US:

The Great Divergence
posted by HopStopDon'tShop at 6:58 AM on November 16, 2010