Our take: Where is the life-blood of our country's revenue? Small business. If tax policy changes, this artery could be cut. In this article, Gail Collins discusses the importance of small business in our economy and how this budding resource does not need to be stunted. Gail Collins is an opinion columnist at The New York Times.
The typical American business owner does not pay corporate taxes. He or she subtracts expenses from revenues and declares the bottom line as income. There are many, many advantages to this approach. You can avoid corporate tax rates, and its a lot easier to deduct things.
When the Republicans claimed that capping the Bush tax cuts at $250,000 would hurt small businesses, the Obama administration quickly retorted that only about 3 percent of the small business owners have incomes above $250,000.