Gov. Steve Beshear's problematic tax overhaul seems to have fizzled out, with the Legislature enacting a revenue bill with just a few small tax changes. The final plan that became law, HB 445, had many small components...
- The Tax Policy Blog
- The U.S. Has More Individually Owned Businesses than Corporations
The U.S. Has More Individually Owned Businesses than Corporations
What sets the entrepreneurial middle class apart from other taxpayers is that they derive a large share of their overall earnings from pass-through businesses such as S corporations, LLCs, and partnerships. These pass-through business owners pay their business taxes on their individual tax returns. Since the 1980s, the number of traditional C corporations has shrunk while the total number of pass-through businesses such as S corporations, partnerships, and sole proprietorships has tripled to over 30 million in total. Today, there are 1.7 million traditional C corporations, compared to 7.4 million partnerships and S corporations, and 23 million sole proprietorships.
For more charts like the one below, see the second edition of our chart book, Putting a Face on America's Tax Returns.
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