Seventy-plus Percent of Manufacturers Pay at Individual Tax Rates

By September 8, 2010Taxation

We’ll say it one more time.

From a Fox News Story: “A senior administration official said the president will endorse extending expiring tax cuts only for the middle class.  The official said, …that 97 percent of small businesses “aren’t touched by this, and the 3 percent of them that are are largely lawyers and lobbyists and financiers …” 

AND MANUFACTURERS

More than 70 percent of manufacturers file as pass-through entities and pay taxes at the individual rate.*

* NAM’s chief economist David Huether reports that according to the IRS Statistics of Income Division in 2007 there were 208,620 manufacturing S corporations and partnerships in 2007. These companies pay at the individual rate. According to the U.S. Census Bureau, there were 286,701 manufacturing companies in the United States. That’s 72.8 percent.

Join the discussion 2 Comments

  • […] “tax cuts for the wealthy,” we’re going to continue to repeat the reality: More than 70 percent of manufacturers file as individuals under the U.S. tax code and could be hit by higher taxes if the 2001 and 2003 rates are allowed to […]

  • Karl says:

    You are twisting the words again. 72.8% of S or sub S (like me) do indeed file as individuals. That figure has nothing to do with the 3% that will be affected by the 250K+ tax “hike”. Hell, if I made over 250K in profit I’d gladly write the check. You do realize that it’s a temporary tax break that is expiring, right?

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