April 22, 2010 08:00 AM | | Bookmark and Share

The National Association of Manufacturers (NAM) has recently argued that President Obama’s proposal to allow the Bush income tax cuts to expire for the richest two percent will hurt small business employment because many small businesses are organized as “subchapter S corporations.”

The reality is that only 2.1 percent of small business taxpayers both (a) are rich enough to lose their Bush tax cuts under President Obama’s proposals, and (b) receive most of their income from an S corporation that they own. Further, S corporations are not necessarily as “small” as many people assume.

Read the report.


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