Most households are simply wage earners.
Quick search - about 25MM small businesses in the US, versus about 130MM individual tax returns filed. These numbers are a few years old, but I doubt the ratio has changed much.
Quote:
Originally Posted by Seahawk
No it doesn't...many households, mine included, lump business enterprises with earned income from non-business (i.e. jobs) sources. My effective tax rate is not based on common household deductions, I can include other business related deductions that mask my non-business income profile...
http://www.streetauthority.com/terms/e/effective-tax-rate.asp
So, then, why, exactly, does total revenue grow? It is my belief that lowering high marginal tax rates on households (stimulus at a personal level...more discretionary income) and businesses (stimulus to invest, moving dollars from static investments) occasions growth.
Total tax revenue and GDP is must be linked. |
We all have "beliefs" but the OP asked for proof as in correlations, graphs, etc. I'm not trying to "dis" anyone's beliefs, and I know there are lots of writings that every side can point to. I'm just saying that what I thought was interesting about this thread was the challenge to post actual data.