Posts Tagged ‘Kohlberg Kravis Roberts’

How “Small” is the “Small Business” We Keep Hearing About?

September 23rd, 2010

Next time your Conservative friends bemoan tax hazards for “small business,” show ’em this:

The “small” businesses that Republican lawmakers say will suffer if the Bush-era tax cuts for the wealthy expire are not so small after all, MSNBC’s “Countdown” reported Tuesday.

Some of these businesses, which include big names in engineering and finance, are “large” in terms of revenue, payroll and distribution, but “small” in terms of ownership, the report, by David Cay Johnston and Chris Hayes, has found.

According to the Republican tax logic, a small number of owners is the sole criterion for a “small business.” Such businesses, which according to the Joint Committee on Taxation accounted for 94 percent of all U.S. businesses in 2007, include partnerships, sole proprietorships and S corporations, a designation that allows owners to report profits and losses on their personal tax return, rather than on the company’s.

“‘Small business’ is a brand name,” MSNBC’s Keith Olbermann said.

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