Tax Day, April 15, is right around the corner. Have you filed your taxes yet? This infographic from Outright illustrates how heavily the government relies on small businesses for tax revenue.
Most Americans pay a federal income tax, however small business owners account for 22.7 million tax returns annually. Many businesses were devastated by the 2008 recession, which left a significant dent in the government’s revenue stream.
80% of small businesses are sole proprietorships, wherein the owner and only employee are the same person. Businesses like this can be a local hot dog stand, a freelancing web-design business, or even a consulting firm.
The most popular such industries for sole proprietorships before 2008 were:
- Professional, scientific, and financial services
- Other Services
- Administrative support and waste management
- Retail Trad
Only other and administrative support services improved from 2008 to 2009. Many argue that the cost of taxes on small businesses deters growth. Nevertheless considering solely owned, small businesses account for $2.7 trillion in revenue, it’s a significant bloc of voters that shouldn’t be underestimated.