Accession Number PB2013-102974
Title Taxing Businesses Through the Individual Income Tax.
Publication Date Dec 2012
Media Count 40p
Personal Author N/A
Abstract Since the individual income tax was instituted in 1913, the profits of most businesses have been allocated, or passed through, to their owners and subjected to that taxrather than to the corporate income tax. However, most business activity has occurred at firms subject to the corporate income tax (C corporations) because those firms tend to be larger than pass-through entities. Over the past few decades, the proportion of firms organized as pass-through entities and their share of the revenues that businesses receive from sales of goods and servicesthat is, business receiptshave increased substantially: In 1980, 83 percent of firms were organized as pass-through entities, and they accounted for 14 percent of business receipts; by 2007, those shares had increased to 94 percent and 38 percent, respectively. This report examines those shifts in organizational structure, the effect they have had on federal revenues, and the potential effects on revenues and investment of various alternative approaches to taxing businesses profits.
Keywords Businesses
Economic analysis
Income taxes
Tax exemptions
Tax structure

Source Agency Congressional Budget Office
NTIS Subject Category 96A - Domestic Commerce, Marketing, & Economics
70F - Public Administration & Government
43A - Finance
Corporate Author Congressional Budget Office, Washington, DC.
Document Type Technical report
Title Note N/A
NTIS Issue Number 1306
Contract Number N/A

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