Over the by few decades, at that topographic point has been an amazing shift inward how businesses are taxed. See the figure below, which is from CBO. Businesses are to a greater extent than in addition to to a greater extent than taxed every bit pass-through entities, where the income shows upwards on personal revenue enhancement returns rather than on corporate returns. (Here is an article discussing how the usual giant Fidelity late switched from 1 shape to the other.)
This phenomenon complicates the interpretation of revenue enhancement furnish data. For example, when 1 looks at the increase of the 1 percent, or the 0.1 percent, inward the Piketty-Saez data, that increase is probable exaggerated because roughly income is simply beingness shifted from corporate returns. I don't know how much. If someone has already quantified the magnitude of this effect, delight electronic mail me the answer. If not, someone should write that paper.
This phenomenon complicates the interpretation of revenue enhancement furnish data. For example, when 1 looks at the increase of the 1 percent, or the 0.1 percent, inward the Piketty-Saez data, that increase is probable exaggerated because roughly income is simply beingness shifted from corporate returns. I don't know how much. If someone has already quantified the magnitude of this effect, delight electronic mail me the answer. If not, someone should write that paper.
Click on graphic to enlarge.
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