Distribution of Tax Units with Small Business Income
2007 distribution of tax units with small business income by marginal tax rate
Table T07-0131 is related to the following tables:
T07-0131 - Distribution of Tax Units with Small Business Income, 2007 (April 27, 2007)
Most tax units with business income face low tax rates but a significant number fall under the alternative minimum tax (AMT). Nearly two-thirds of tax units reporting income on Schedules C, E, or F will face marginal tax rates no higher than 15 percent in 2007. Most of those facing higher rates will be on the AMT, typically at a 26 percent tax rate. Less than two percent will face the maximum individual tax rate of 35 percent.