Small, local businesses may pay higher taxes for running a biggest than some of America’s largest, most profitable corporations, according to a new study from the National Federation of Independent Businesses and the S Corporation Association.
San Francisco, CA -- (SBWIRE) -- 08/19/2013 -- Two of the most common types of small businesses pay a percentage of their income to the government almost double that of large corporations when tax credits and deductions are included.
Those small businesses are most likely to sponsor local little league teams or events for local tragedies. The result is an average corporate tax rate of just 12.6 percent, according to the Government Accountability Office, which is compared to 31.6 percent and 29.4 percent that S corps. and partnerships pay.
The findings from the study come as many Americans are criticizing the largest corporations for legally finding ways to avoid paying their fair share in taxes. Many large companies, such as Apple, Amazon, and Google all wind up paying less than the top Federal tax rate of 35 percent, where the rest of America’s small business, make up the rest. In fact, some companies, such as General Electric, have been getting by with paying negative tax rates, which means that they actually gain money from paying taxes.
President Obama has called to reform the corporate tax code to force big corporations make up the difference and reduce the burdens on small businesses.
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