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Private Jet as Security Write-Off? 10 Most Insane Tax Loopholes


US Politics & Gov't  (tags: abuse, americans, congress, corruption, crime, dishonesty, economy, elections, ethics, freedoms, Govtfearmongering, lies, mccain, media, politics, propaganda, republicans, wealthy tax loopholes )

Kit
- 544 days ago - truth-out.org
Due to the proliferation of loopholes, deductions, credits, and the growing use of offshore tax evasion, many rich Americans and corporations are able to dodge the bulk of, if not all, their taxes.



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Kit B. (276)
Saturday March 2, 2013, 8:29 pm
(Photo: suenosdeuomi / Flickr)


For corporations and the 1 percent, tax season offers plenty of ways to dodge Uncle Sam.

With the national tax filing deadline fast approaching, Americans are once again plopping down with pen, paper and potentially Turbotax to determine just how much they owe their state and federal governments. But while the popular refrain posits that nothing in life is certain but death and taxes, for many corporations and wealthy individuals, having to pay a tax bill is anything but a certainty.

Due to the proliferation of loopholes, deductions, credits, and the growing use of offshore tax evasion, many rich Americans and corporations are able to dodge the bulk of, if not all, their taxes. Between 2008 and 2011, 26 major American corporations paid nothing in federal corporate income tax, despite making $205 billion in pretax profits. In 2011 (the last year in which data is available), corporations paid just a 12.1 percent effective tax rate, the lowest in four decades. Many wealthy individuals, meanwhile, are able to drive their tax rates down below the rate paid by middle-class families. Some drive it all the way down to zero.

There are certainly large, systemic reasons for these disparities. But part of the problem is that the rich and the biggest companies have access to a slew of tax breaks from which the average household or small business derives very little benefit. Here are 10 of the most ridiculous.

1.) CEO “private security.” A “common corporate tax trick,” according to the New York Times, is corporate boards paying for private jets and other perks for their CEOs under the guise of security. As Steven Davidoff reported, typically CEOs would have to pay taxes on these benefits, but if the benefit is classified as necessary for security purposes, “the chief executive will pay a reduced tax bill or sometimes no tax at all.”

2.) Florida cow scam. In Florida, wealthy developers, lawmakers and even some corporations game the tax code by placing cows on their land for a limited amount of time each year, thereby qualifying for agricultural tax breaks. Sen. Ben Nelson (D-FL) has benefited from this absurd loophole for years, as has Disney World. But Florida isn’t the only offender. From rock stars in New Jersey to movie stars in Colorado, tax breaks meant for farmers get gamed by the most privileged, using everything from sheep to beehives.

3.) Facebook stock options. The social media giant Facebook made more than $1 billion in profits last year, but paid no corporate tax thanks to a huge write-off after its initial public offering. In fact, the company received a refund of $451 million. As Citizens for Tax Justice, explained, “Facebook’s income tax refunds stem from the company’s use of a single tax break, the tax deductibility of executive stock options.” This loophole will also allow Facebook to avoid more than $2 billion in taxes in future years. LinkedIn used the same gimmick to pay no federal taxes for the last three years.

4.) Bluegrass boondoggle. This tax break, created by Senate Minority Leader Mitch McConnell (R-Kentucky) in 2008, gives wealthy horse owners a break worth $126 million over 10 years by allowing faster depreciation (quicker tax write-offs) of race horses. McConnell has defended the break by claiming it helps Kentucky’s “farm economy.”

5) Sheryl Crow loophole. Low tax rates on investment income are one of the main reasons the wealthy are able to pay lower taxes than those in the middle-class (and are also a prime driver of income inequality). Lawmakers from America’s heartland felt it was necessary to let super-wealthy musicians get in on the action, and so “passed a law allowing songwriters to avoid income taxes and sell their publishing catalogs at capital gains rates.” As San Francisco Weekly’s Chris Parker noted, “Three years later, Sheryl Crow sold her publishing rights to one of Australia's largest banks for nearly $10 million. Her estimated savings courtesy of this congressional giveaway: $2 million.”

6.) NASCAR tax break. Thanks to a provision in the 2008 bank bailout, owners of NASCAR tracks are able to write off the costs of their facilities over seven years, rather than “over the 39 years that the government estimates it will take for the tracks to depreciate.” This particular loophole costs the government $40 million per year, but Congress reauthorizes it over and over again.

7.) John Edwards/Newt Gingrich loophole. Both the former presidential candidate and the former Speaker of the House have taken advantage of a provision allowing them to dodge payroll taxes. By forming “S corporations,” Edwards and Gingrich are able to classify the money they receive from various ventures as “business profits,” rather than payments for services rendered, which exempts that money from the payroll tax. This loophole is regularly abused by lawyers, doctors and accountants, who can count the work they do every day as part of operating a “small business” that consists only of themselves. As tax expert Seth Hanlon noted, “Regular wage-earners can’t do this, and neither can the owners of other kinds of small businesses.”

8.) Tax breaks for vacation homes and yachts. The mortgage interest deduction, which is supposed to boost homeownership, can be used on second homes, or even yachts, so long as they are large enough to accommodate a bathroom, along with a cooking and sleeping space. Limiting the deduction to primary residences would raise $1 billion per year in revenue.

9.) “Double Irish” and “Dutch Sandwich.” Many companies, from Google to Amazon to Starbucks, use offshore tax havens to drive down their corporate tax rates, sometimes down into the single digits. Some of the inventive strategies they’ve used include routing profits through Ireland, the Netherlands, Bermuda, or Luxembourg, using tax tricks with cheeky names like the “Double Irish” and the “Dutch sandwich.” European countries have recently attempted to crack down on some of the more flagrant abuses.

10.) Large SUVs. We’ve already discussed the yacht tax break, but going out and purchasing a large SUV will get a member of the 1 percent another write-off. As Bloomberg News noted, the tax code’s restrictions on write-offs for luxury vehicles don’t apply to those “rated at 6,000 pounds unloaded gross vehicle weight or more.” This means that “purchasing a large SUV often provides faster writeoffs than similar but smaller vehicles.”


Closing these loopholes would certainly not fix the tax code’s much larger problems or put a huge dent in the federal deficit. But they would at least get rid of some of the more egregious giveaways that plague the American tax system, while raising some money that can go to providing the critical services upon which many Americans depend.
*** extended information in article at VISIT SITE***

By Lynn Parramore, AlterNet | Report | Truthout |
 

Jae A. (323)
Saturday March 2, 2013, 10:31 pm
Well hell...no ya tell me about the private jet write off...would have been nice to know before selling ours but at least we held onto our yacht and vacation villa....In my dreams that is :-)
That being said...and we wonder why there isn't money to pay the nation debts.................geeze.

[Good to see you are feeling better Kit and back on the front lines for a saner America ]
 

David C. (29)
Saturday March 2, 2013, 11:41 pm
the best loophole--buy off the GOP
 

Tim C. (1829)
Sunday March 3, 2013, 12:43 am
thanks
 

Diane O. (149)
Sunday March 3, 2013, 3:46 am
Hi Kit! I have to agree that some loop holes need to be closed. As Americans, it is our patriotic duty to research where spending can be cut and where we can raise revenue.

Always of interest to me, as a republican, is the $860 billion failed stimulus that our current president sold to us as a Job's Bill.

This was an interesting read on Obama's $860 billion stimulus:

"Good jobs for millions of Americans.

Investments in priorities that create sustainable economic growth for the future.
Those were the promises made to uneasy Americans when Congress approved the $787 billion American Recovery and Reinvestment Act, or economic stimulus bill, in February.

Nine months later, with over $200 billion of stimulus funding already spent,1 the rolls of the unemployed have grown by millions and, by any measure, more jobs have been lost than created.

Since the stimulus bill was enacted in February, nearly three million Americans have lost their jobs2 and the percentage of people who are without work has risen to 10 percent.3 Many who had been looking to the government for help have already lost hope.

As this and the last report, 100 Stimulus Projects: A Second Opinion,4 suggest, billions of dollars of stimulus funding have been wasted, mismanaged, or directed towards silly and shortsighted projects. Many projects may not produce the types of jobs that most Americans had hoped for or expected.

Some of the close to seven billion dollars in projects in Stimulus Checkup create few jobs; benefit private interests over the public good; or make improvements where they are not necessary. Some send money to companies facing fraud charges. Others take millions of dollars to do work local officials and experts admit are not needed or will not help.

Stimulus money has been, or will be, spent on dinner cruises, golf courses, puppet shows and stimulus road signs. Many Americans will question whether investing $787 billion in these projects are the highest national priorities.

Spending $25,000 for a puppet show may not seem like a big deal in Washington, for most Americans it is a lot of money. Washington, D.C. politicians blithely spend billions of dollars a week, but every dollar wasted is also a dollar borrowed—and a dollar to be paid back with interest in the future.

1 Recovery.gov website, ―Overview of Funding,‖ http://www.recovery.gov/Pages/home.aspx, accessed December 4, 2009; As of November 27, 2009, $217.6 billion of the American Recovery and Reinvestment Act has been paid out. This includes 92.8 billion in ―tax benefits,‖ $60.8 billion in ―contracts and grants,‖ and $84 billion in ―entitlements.‖

2 Bureau of Labor Statistics, Household Data, Seasonally Adjusted, ―A-3. Employment status of the civilian noninstitutional population by sex and age, seasonally adjusted,‖

ftp://ftp.bls.gov/pub/suppl/empsit.cpseea3.txt, accessed December 4, 2009.
3 Bureau of Labor Statistics, News Release, ―THE EMPLOYMENT SITUATION – NOVEMBER 2009,‖ December 4, 2009, http://www.bls.gov/news.release/pdf/empsit.pdf.

4 Report can be found on the Website of Senator Tom Coburn, http://coburn.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=59af3ebd-7bf9-4933-8279-"

It appears that our current president has added a great deal of wasteful spending.

Recently I read where the taxpayers are paying $4 million annually for the IRS TV Studio which is never utilized. A great deal of waste can be cut across the board as well as tightening up some of the tax loopholes enjoyed by wealthier Americans.

No matter where we turn whether it's to the left (democrats) or the right (republicans) we find a great deal of pork funding that should be stopped today.

Obama has spent a great deal of taxpayer dollars on his constant campaigning via Air Force One. The taxpayers should never allow a president to use our taxpayer dollars for campaign purposes. That's an expense that Obama needs to pay out of his own campaign donations.

This isn't a republican problem. This problem spares no political party and to be fair there are many very wealthy democrats who enjoy the tax loopholes, too.

Kit, this is a great article for discussion and thanks for posting it. Let's see how other people weigh in on this topic.
 

Daniel Partlow (189)
Sunday March 3, 2013, 8:13 am
This really pisses me off! If anything they should be paying higher taxex, not geting out of paying any!!! We need this fixed, but as the rich have the money to buy the politicians, I can't see it happening!
 

Gloria picchetti (286)
Sunday March 3, 2013, 8:37 am
See why we drink?
 

Kit B. (276)
Sunday March 3, 2013, 8:46 am

Personally, I don't know what is wrong with you people. I don't know what I would do without my tax shelters in the Caymans and other countries. I depend greatly on writing off my Jet, my upkeep expenses on all my homes, including my Yacht and fleet of very large cars - of course being environmentally aware I do own a Tesla as well - that too is a delightful write off.

Sorry to disappoint but this is NOT a republican or democrat issue, this is NOT about Obama, that is unless you also wish to toss the same stone at each and EVERY president that has ever held the office, that does include George Washington. Taxation is the way one shows allegiance and citizenship to their country, no one ever said we must like taxes, but avoidance of taxation, through any means is a most despicable act, one that could well been seen and nearly treasonous. Yes, a thousand times over, there is waste in government, the government of the United States and EVERY government that has ever or will ever exist. Blaming one administration is simply the bully on the play ground wishing to mock the "red haired" child. It is a deep endemic problems that will never be fully eradicated, however, if one spends less time being angry and more time doing some honest, non-partisan research, this current administration is now and has offered some very constructive ideas on how to lower the debt. That does not mean I ask nor expect anyone to jump on the Obama train and celebrate his efforts. Only that those who claim concern to be honest enough to consider and analyze the proposals. It would also mean that each of us must be honest enough with ourselves to understand the most of this is pure politics and we are nothing more nor less than the pawns in this long continuing game of chess. We are NOT bankrupting our grandchildren, we are NOT passing on burdens, that is the great fallacy of artistic political rhetoric. It "sounds" right, but is quite far from being correct. What happens in a family budget does not now, nor has it ever translated into the budget of any governing body. None of us should be dupes, none of us should be following a party line, we need to have enough personal integrity to learn the truth from non-biased sources.
 

Tina P. (30)
Sunday March 3, 2013, 8:49 am
This is insane! Close the loopholes now!!
 

cecily w. (0)
Sunday March 3, 2013, 9:16 am
This situation has developed because the U.S. taxing non-system has become so complicated, and these complications have been enabled by on-the-take politicians.

A flat tax of X% on ALL income by ALL individuals, businesses and corporations should be instituted--no exemptions, deductions, credits or deferrals. Expenses need to be considered a cost of doing business or having children. Individuals, businesses and corporations who resort to reporting "irregularities" and other devices (offshores, etc.) should be subject to assets seizure.

At the same time, voters should have more impact on government assertions as to what % is "needed"--including, but not limited to--the pay, percs and benefits of elected and appointed officials.
 

Kit B. (276)
Sunday March 3, 2013, 9:24 am

Thanks Cecily. I appreciate your thoughts on this. I am not very supportive of a flat tax because our current system began as a flat tax, and I fear any flat tax will quickly be manipulated and increased in ways that will harm the working and middle class - again. I do support a strong Progressive tax, with absolutely no loopholes beyond the obvious need for some relief for those working poor, working class and middle classes that require some way of sustaining their income in the face of paying for child care and medical expenses. If one can own or lease a private Jet, than I do believe they have no need for a tax relief for that personal desire.
 

jan b. (3)
Sunday March 3, 2013, 9:35 am
Kit---I agree 100%. Unlike most Americans, Buffett and the country's wealthiest taxpayers make much of their income from investments. The capital gains and dividends those investments generate are taxed at a much lower rate than wages. And then the wealthiest take tax writeoffs that most Americans won't be entitled to like a mortgage on a second home often costing millions $$.
 

pam w. (191)
Sunday March 3, 2013, 9:37 am
I know someone who has formed an "S CORP" and she routinely is able to withhold the largest percentage of her income from taxation.

Yes, it's legal.

Yes, millions do it.

I cannot respect her.....
 

Ro H. (0)
Sunday March 3, 2013, 9:45 am
ty
 

Kit B. (276)
Sunday March 3, 2013, 9:57 am

I too agree. There is nothing to admire or celebrate in those who intentionally avoid the one constant in fulfilling our duty to citizenship. The need and formation of governments is essential in the conduct of human enterprise. I do not believe any of us have so evolved that we are ready or able to begin a journey into that dystopian world of chaos and lawlessness that is the root of no government. The only thing wrong with government is that people do not participate once a vote is cast. It is by the nature of our governmental system that citizen participation, not just citizens whining is essential to good governance.
 

cecily w. (0)
Sunday March 3, 2013, 10:16 am
Thanks, Kit. I should have clarified in my post (above) that my remarks pertained to INCOME TAXES. Money for programs that benefit the working poor, working class, and middle class--and, for that matter, the wealthy--should be obtained from SALES TAXES perhaps with a bit more federal involvement. Sales taxes are more cut and dried, and certain classes of goods could continue to be exempt or taxed at a lower rate. Currently, many states charge lower sales taxes on certain types of food, and zero tax on prescribed medicines. At the other end of the spectrum, the federal government (excise taxes) and the various states charge higher taxes on certain products--tobacco and so forth--and this capability might be increased.

Sales taxes are easier to monitor than income taxes (due, in part, to the federal and state mess that we have now).



 

Val R. (239)
Sunday March 3, 2013, 10:22 am
There will always be loopholes for the rich!
 

Kit B. (276)
Sunday March 3, 2013, 10:25 am

I once advocated for the FAIR TAX, unfortunately after nearly a year or more of spending time reading that which is not immediately a part of the "sales pitch" and one can find that this too is just another end run around the essentials of participatory taxation. I see some potential for more fair sales taxation however, depending on the state in which one resides these too have become a serious means of tax gouging those who already pay heavily through payroll taxes. Because Texas has no formal Income Tax, it is easy to assume we pay low taxes. In fact, the opposite is true, we are one of the most heavily taxed states with few benefits for the people in taxes paid. Food should not be taxed, prescriptions should not be taxed, basic needed clothing should not be taxed, but all too often - they are.

Thank you Cecily and always you present a cogent discussion of your ideas.
 

Micheael Kirkbym (85)
Sunday March 3, 2013, 11:07 am
How to correct it; you could start with capital gains: all income to be treated as one source of Gross income before deductions; resulting in a more appreciative tax percentage reflective of the true Gross Income. After deductions and charitable donations and other expenses allowed by government we come to the Net Income, depending on which tax bracket you come under will result in higher or lower taxes.
The 1% are very good at manipulation cash flow sources; investments and stock options. They've got more options of moving money around so that the NI is low to the point that they pay no tax if any tax at all.
Close the Delaware type loopholes. Re-institute Glass-Steagall and you will find the playing field a bit more level. This is why increasing the tax percentage doesn't bother Warren. Berkshire Hathaway employs some very clever people to care of him.
 

Arielle S. (317)
Sunday March 3, 2013, 11:22 am
It's not a party issue, that's true, but you must admit, Kit, that somehow a goodly many of the rich are Republican and have been protected by a very Republican Congress. Not that I see anything changing under the Dems...
apparently once you have money, it only becomes more and more important to see it grow. I have to wonder how much money the country would save by simply getting rid of the loopholes above.
 

. (0)
Sunday March 3, 2013, 11:25 am
I live in the UK but recognise many of the issues raised here. Tax avoidance and evasion are the plague of many countries and there will always be other countries who will seek to take advantage of the situation. I do not see this, in principle, as being a party political issue, taxes must be paid, the only thing that the policicians should be debating is what level of taxation is appropriate.
 

Kit B. (276)
Sunday March 3, 2013, 11:42 am

Howard that is true, if somewhat impolitic, this is America and our politicians are obviously paid to talk around issues and avoid addresses issues.

Arielle, I'm just stating that the crux of the Sequester is not owned by either party, both are deeply in debt to the "Company Store" and have no desire to actually do more than talk about closing loopholes.
 

Alice C. (1797)
Sunday March 3, 2013, 12:03 pm
Who flies the private jets ? I can't afford a jet and can just about afford to keep my car on the road. Thank you for this post Kit.
 

Diane O. (149)
Sunday March 3, 2013, 2:33 pm
The rich pump a great deal of revenue into our country. Private jets are one of them, I guess. I do agree that there are loopholes that can and should go away but you also have to consider that the rich provide millions and millions of jobs to Americans. And in so doing, they provide healthcare and other valuable benefits. Many offer pay for gyms and some pay for daycare for their employees. To give them a break in taxes is not a bad way for America to do business. And, it goes without saying actually, that the rich pay a great deal in taxes. Certainly those Americans who earn over $450,000 a year are now paying higher taxes and many of these Americans are our small business owners. Not only are they getting hit, both large corporations and small businesses, with the healthcare penalty but they are seeing higher taxes on the horizon and losing tax loopholes on top of it. There's a balance that should apply here but so far we don't have competent people in the White House to figure it out.

When a country continues to lean on the rich to pay the bills they end up shooting themselves in the foot. Look at France who has raised taxes on their rich to 75%. The rich leave the country taking the jobs with them. Who gets hurt?

So, there is a lesson for us to learn here in the United States by watching what goes on abroad.
 

Mitchell D. (130)
Sunday March 3, 2013, 2:50 pm
this is haow the system keeps feeding the greed of the Plutocrats, and their bank accounts.
 

Angelika R. (146)
Sunday March 3, 2013, 3:35 pm
..the EXACT thing that got Greece down! Tens of thousands of privat yachts using tax loopholes by letting them for rent! It is painful to read all the missed possibilities-although widely known before!- now after sequester was signed.
 

Angelika R. (146)
Sunday March 3, 2013, 3:39 pm
I would get too far off again if I one again told you about how things work over here.. Glad we DO have watchdog -opposition parties to prevent such dirty tricks in most cases-..get RID of your desastrous 2-party system!!!!!!!!!
 

Diane O. (149)
Sunday March 3, 2013, 3:49 pm
The Brits have a two party system Tory (like US republicans) and Labor (like our democrats in US)

The two party system works in America. We also, like the Brits, have smaller groups such as Libertarians and Independents but we remain a two party system.
 

Kit B. (276)
Sunday March 3, 2013, 3:59 pm

The people have not left France with the exception of the much publicized loss of a one time movie star now out of his prime.

Today's wealthy are not like the once glorified "Robber Barons" who did provide jobs, even if those jobs provided grave harm to the employees.

Let's not get carried away with a worship of the wealthy your own well being and survival needs have no interest to them, their wealth is gained on the backs of the blood, sweat and tears of the working class, with little to no regard for the rules or laws of this country.

 

Theodore Shayne (56)
Sunday March 3, 2013, 4:07 pm
What will they come up with next; the divine right of kings?
 

Yvonne White (231)
Sunday March 3, 2013, 6:16 pm
Todays Uber rich are not your Henry Ford types - more exploitive like Donald Trump or Paris Hilton..these Corporate-Persons hire One at a time not one thousand & will fire that One or call the Immigration police rather than pay in Social Security, Worker's Comp. or Insurance on them!
Now I feel totally Uinder Protected because I have no jet..:( Can I write off Very Loud Dachshunds as Security Patrol (Special Ops?)!?
 

Dandelion G. (386)
Monday March 4, 2013, 3:06 pm
The Plutocrats have certainly had a nice time of it, fixing things to go their way and then when the Government is suffering from their lack of taxes the Greedy want to take it out on the most Needy.

I recall an event that happened when a people were fleeced like this by the Oligarchy for too long, called the Storming of the Bastille.

Welcome back Kit, glad you are feeling better.
 

Angelika R. (146)
Monday March 4, 2013, 3:11 pm
That's right, and YOUR revolution is lurking right around the corner..-or else the total decline.
 

Kit B. (276)
Monday March 4, 2013, 3:27 pm

That old Guillotine is just sitting in storage in France.
 

Diane O. (149)
Monday March 4, 2013, 3:49 pm
The "rich" in America started with a an idea...a dream....a vision...call it whatever you see fit. Only in America can a man or a woman (think Spanx LOL) take an idea and push it forward...and they become rich overnight. Why would we penalize these people? Why would we penalize Think about Steve Jobs....an American, who did all of the right things to move his company forward providing millions of jobs for Americans and great benefits.....think about this. And, we as Americans, would want to "punish" innovation?

I have a real problem with this course of action.
 

Kit B. (276)
Monday March 4, 2013, 4:13 pm

Umm...perhaps Steve Jobs and his self created slave shops in China is not exactly the way to win the hearts and minds of those who do believe that if one gains their wealth in this country; they also owe a debt to this country. People all over the world have unique ideas and become wealthy while still feeling a sense of fealty and loyalty to their country. There is no punishment for those who think in terms of stewardship and loyalty.
 

JL A. (275)
Monday March 4, 2013, 5:00 pm
"Steve Jobs was the greatest manufacturer of consumer products of his age. His marketing vision put him on par with Henry Ford, and his grasp of the aesthetic component to industrial design far surpassed Ford’s. But Jobs differed from Ford in one significant way. His surname to the contrary, he did not create a lot of American jobs."
http://www.newrepublic.com/blog/timothy-noah/95877/steve-jobs-job-creator#
 

JL A. (275)
Monday March 4, 2013, 6:15 pm
Who Creates Jobs?

The younger companies are, the more jobs they create, regardless of their size.

The popular perception that small businesses create most of America's jobs has been the focus of heated debate for three decades. However, the more telling characteristic for predicting job creation is the age of the firm, not its size, according to a new study by John Haltiwanger, Ron Jarmin, and Javier Miranda. In Who Creates Jobs? Small vs. Large vs. Young (NBER Working Paper No. 16300), the researchers conclude that the younger companies are, the more jobs they create, regardless of their size.

Of course, all startup firms operate in a volatile "up or out" environment. After five years, many of these young companies are "out" -- they fail and, as a result, destroy nearly half of the jobs created by all new companies. Nevertheless, the surviving firms continue to ramp "up," growing faster than more mature companies, and creating a disproportionate share of jobs relative to their size.

"Firm startups account for only 3 percent of employment but almost 20 percent of gross job creation," the authors write. "[T]he fastest growing continuing firms are young firms under the age of five," the authors conclude.

In this study, which relies on data from the Census Bureau, the authors confirm that smaller companies created more jobs than larger companies during 1992-2005. But the importance of firm size depends very much on the assumptions one makes about the base year of the analysis, the number of employees used to define "small", and other factors. The real driver of disproportionate job growth, they find, is not small companies, but young companies. It is the startup firms that generate the surge of jobs that earlier research attributed to small companies.

Indeed, grouped in traditional ways, businesses tend to create jobs in proportion to their importance in the economy. Thus, large mature firms – those more than ten years old and with more than 500 workers – employed about 45 percent of all private-sector workers and accounted for almost 40 percent of job creation and destruction in this study.

-- Laurent Belsie
The Digest is not copyrighted and may be reproduced freely with appropriate attribution of source.
http://www.nber.org/digest/feb11/w16300.html
Historical tax/income data:
http://www.aleksandreia.com/2010/08/30/historical-tax-income-data-some-charts/
U.S. Federal Individual Income Tax Rates History, 1913-2013 (Nominal and Inflation-Adjusted Brackets)
http://taxfoundation.org/article/us-federal-individual-income-tax-rates-history-1913-2013-nominal-and-inflation-adjusted-brackets

The articles posted just above match the data in the above links, and thus are the reality
 

Kit B. (276)
Tuesday March 5, 2013, 6:06 am

Well done - thanks for the additional information. (J l. (o), Dandelion and Angie - I am afraid Diane that your "proof" bears no pudding. Though these comments are expected talking points, I might suggest that you be unafraid to step beyond "talking points" to learn some actual real world facts. Honest, hard working people are not under attack, nor are those who own a small business under attack. Those who have robbed from the pension funds, hedge funds and stolen directly from the cash and trust of banks are most directly under attack. Sadly not by the justice system, only by those in government who are asking that we simply close the loopholes that allow them to avoid paying taxes. In essence there is not right - left argument here, that is unless those in DC want to create one, and their followers oblige.

I think another point that is missing when we discuss or use the Small Business model of those who are hurt or harmed by increased taxation or the closing of loopholes. In the United States a small business is one with 500 employees or less, is privately or cooperatively owned (employee ownership). The overall average take home income after all taxation for owners of Small Business, those with 500 employees or less is under $45,000 per year. That is available from both the IRS and CBO along with statistics from the Bureau of Labor. Anyone is free to do the research, I did and do not feel it is my responsibility to do the work for others. When the president or economists discuss the need for increased taxation they are most certainly NOT looking to damage the Small Business owner but there may be some ideas of punitive damages to those who have so abused this country as they plunder for self wealth and pay little to nothing in support of the country that gave them those opportunities to grow extremely wealthy.
 

Diane O. (149)
Tuesday March 5, 2013, 2:51 pm
Now, Kit, don't tell me my proof has no pudding LOL....you know I'm sensitive LOL! I work for a small business and I've been a small business owner and I agree that they are the job engines. 53% of Americans work for small businesses so I understand completely how valuable they are. Obamacare is going to hit them hard. The tax increase will hurt them and unfortunately they want hire new people.

It's a mess. Can we call it a royal mess, Kit?

There's nothing wrong with "self wealth." We live in a country where immigrants are lined up trying to become an American citizens. We should ask ourselves why many want to live in America.

Well, now I believe you have hurt my feelings. I forgive you. Insert smiley face here.
 

JL A. (275)
Tuesday March 5, 2013, 3:11 pm
See data above: New small businesses--started within the past 5 years--are the job creators.
The Bible has a lot to say against self-wealth at the expense of the well being of the village (what the parable about the talents means according to Biblical scholars).
 

Diane O. (149)
Tuesday March 5, 2013, 3:27 pm
France is a small country. When they tax the wealthy in their country at 75% they are targeting the owners of large companies. The rich will leave France. They have every reason to relocate to a more tax friendly country.

Period.
 

Diane O. (149)
Tuesday March 5, 2013, 3:30 pm
My prediction is that Obama will become the most disrespected president in our lifetime in America. He has lost is "aura" and now stands before us a liar and blatantly incompetent. The only asset Obama "had" was his gift of reading a teleprompter. Beyond that, he has a Harvard Law degree and nothing else. Law degrees today are a dime a dozen and are meaningless.

 

JL A. (275)
Tuesday March 5, 2013, 4:38 pm

The Average Income of Small Business Owners
by KJ Henderson, Demand Media
Small business owners' average income varies greatly, based upon multiple factors.

Small business owners' average income varies greatly, based upon multiple factors.
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A small business owner is an individual who manages his own organization. These entrepreneurs can be found within all industries, including retail, entertainment, financial services and law. A formal educational background is not required to become a successful small business owner. What is needed however is a good idea, a solid business plan and startup capital. Due to the variety of organizations that make up this sector, the average income of small business owners varies widely, depending upon level of experience, location of employment and gender.
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Average Income by Experience

According to compensation survey administrator PayScale in 2010, the average income of small business owners varies widely depending upon their level of experience. For example, small business owners with less than one year of experience in running an organization earn an annual salary ranging from $34,392 to $75,076. Those with more than 10 years experience, on the other hand, earn upwards of $105,757 per year.
Average Income by Gender

The average income of small business owners is also affected by gender. Males earn a median annual salary that far surpassed their female counterparts. Payscale’s report indicated that men who own small businesses earn a salary that ranges from $42,575 to $96,111. Women, on the other hand, only earn $31,380 to $71,140 every year.
Average Income by Industry

The industry in which a small business operates also affects the average income of his owner. Some industries pay far more than others. For example, entrepreneurs who owned electrical contracting businesses make salaries that range from $49,910 to $114,000 each year. Child care providers, in contrast, make anywhere between $19,792 and $61,674 annually.
Average Income by Special Skill

Although a small business owner overseas is entire operation, it is not uncommon for him to have a specific skill set. For example, the owner of a financial services recruiting firm may have started his career as a tax accountant. The possession of special skills can affect an entrepreneur’s average income. Those with accounting skills, for instance, earn an average annual salary ranging from $38,884 to $81,313, while individuals with sales management experience earning income ranging from $45,000 to $104,762.
Average Income by Region

The region in which a small business is located also affects the average income of its owners. A report issued by PayScale indicated that entrepreneurs employed on the coasts earn more than their counterparts in the South and Midwest. Entrepreneurs in New York, for example, earned a median yearly salary upwards of $125,185, while those in Georgia top out at $75,500.
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Resources

State University: Small Business Owner

About the Author

Based in New York City, KJ Henderson has written television pilots, consulted at Merrill Lynch and served as a public relations representative for individual and corporate clients since 1999. His travel and style articles have appeared in multiple online media outlets, including LIVESTRONG.COM. He is a practitioner of the SuperSlow exercise method, and he attended DePaul University for classical music.
http://smallbusiness.chron.com/average-income-small-business-owners-5189.html

The tax loopholes that were this article's focus do not seem to be ones the above profiles would tend to have used.
 
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