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Plutocrats? Or enterprises?(personal income tax)(Brief Article)

The American Enterprise

| April 01, 2005 | Zinsmeister, Karl; Light, Joseph | COPYRIGHT 2005 The American Enterprise, a national magazine of politics, business and culture (TEAmag.com). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Many of the "rich people" captured in U.S. income statistics are actually small businesses. That's because 90 percent of small businesses now pay their taxes through the personal income tax system rather than America's corporate tax system.

The Tax Foundation reports that in 1980, 13 million small businesses filed through the individual income tax code. Today that number has doubled to 26 million. Because they are paying comparatively hefty sums, a majority of all individual income taxes paid this year (55 percent) will come from business owners, the Foundation estimates.

Those small ...

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