Anyone have stats on small business income?

[Blayde Starrfyre]

In another board some Republican claimed that Kerry's pledge to cut taxes for 99% of businesses was B.S. because of the (just) tax increases on people making over $200,000. Clearly, that's garbage. However, I would like to have the statistics on average small business income and what percentage of owners make more than $200,000 a year. Anyone have them?

[serryjw]

1. The 2 BEST articles on the subject

quote........
In 1998, only 3.4 percent of tax filers with positive small business income had adjusted gross incomes above $200,000. (The vast majority of taxpayers subject to the 36 percent or 39.6 percent tax rates have incomes above $200,000.)
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http://www.cbpp.org/5-3-01tax2.htm


quote----------
Similarly, the President has repeatedly invoked the benefits his tax cuts, and especially his proposal to reduce the top income tax rate, provide to small businesses. Yet, according to Treasury Department data, the top rate reduction benefits only two percent of small business owners. In other words, 98 percent of small business owners are not in the top tax bracket. In fact, many more such individuals receive the Earned Income Tax Credit for lower-income working families than are in the top bracket.

Furthermore, the Administration’s definition of “small business owner” includes anyone who earns even one dollar of income that is classified as business income under the tax code. Under this definition, one need not actually run or own a major share of a business to be classified a business owner. This definition includes wealthy individuals whose primary income does not come from small business ownership or operation but who do some consulting or invest in real estate on the side. Many of those in the top tax bracket are better characterized as very-high-income individuals, such as corporate executives, with some business investments.
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http://www.cbpp.org/4-14-04tax-sum.htm

[Blayde Starrfyre]

2. Many thanks

Thanks a lot for your help, it's much appreciated.

[stavka]

3. I'd like info on just "what is a small business" (and what isn't)

Is a single lawyer a small business? Is a retail store? I've never heard a solid definition.

[serryjw]

4. Ask the SBA!

------quote
What is a Small Business
The Small Business Act states that a small business concern is "one that is independently owned and operated and which is not dominant in its field of operation." The law also states that in determining what constitutes a small business, the definition will vary from industry to industry to reflect industry differences accurately. SBA's Small Business Size Regulations implement the Small Business Act's mandate to SBA. SBA has also established a table of size standards, matched to North American Industry Classification System (NAICS) industries.

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http://www.sba.gov/size/