Small Business Tax Benefits : Overview and Economic Analysis

Author / Creator

Library of Congress. Congressional Research Service

Available as

Online

Summary

Provides an overview of Federal tax benefits for small businesses and examines possible economic rationales for these benefits. Discusses various tax benefits for small business, including taxation...

Provides an overview of Federal tax benefits for small businesses and examines possible economic rationales for these benefits. Discusses various tax benefits for small business, including taxation of passthrough entities, graduated corporate income tax rates, the expensing allowance for certain depreciable business assets, exemption of certain small corporations from the corporate alternative minimum tax, cash basis accounting, tax incentives for private equity investment in small firms, and tax credit for pension plan start-up costs of small firms. Reviews the economic role of small firms, and evaluates economic arguments for and against small business tax preferences.

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