In the US, tax policy defines neither officially nor makes special rules for entrepreneurs. Certain types of business activities carry tax benefits, such as providing subsidies or write-offs, but they do not uniformly apply to all entrepreneurs in the economy. The entrepreneur only pays taxes in accordance with its business activities. All other aspects of taxes—from filing to a tax deduction for getting money back—this is for those who are entrepreneurs, and those who do not.
Business and taxes
Economists at the National Bureau of economic research published a paper in 2002 titled “taxes and entrepreneurial activity: Theory and evidence in the U.S.” the article provides theoretical evidence that taxes affect economic activity and changes in the structure of incentives for existing and potential entrepreneurs. Their research focused on differences in tax rates between business income and income in the form of wages, and how profits and losses are. He came to the conclusion, reinforcing the intuitive notion that tax law changes human behavior in meaningful ways.
This type of research shows the taxes to change the scope of entrepreneurial activity in the United States, though entrepreneurs are not taxed differently. Supposedly, the tax legislation in which entrepreneurs are trying to make changes in the economy and changes in the types of external benefits or costs that entrepreneurs produce.
Entrepreneurs and business taxes
The concept of the entrepreneur, which is usually associated with a new start-up business. Tax rules for business are very different than in the tax law for individuals. However, all taxpayers, entrepreneurs or not, will be interested to pay less taxes to maximize their economic benefits, whether it is a file of income of businesses or individuals.
In this sense, it is incorrect to assume that entrepreneurs face different tax consequences than non-entrepreneurs. The same applies to natural and legal persons. may Very well be that entrepreneurs are more likely (on average) to low-tax strategy, but the underlying principles and methods are no different.
(For associated reading, see: are You an entrepreneur?)