What was the average income for small business owners in 2005?

Answer 1

Salary.com did a survey in 2006 of business owners and CEO's salaries. The survey shows that the average income is around $233,000. Note that this salary is in fact under the threshold that Obama would raise taxes on, so Obama will not raise taxes on the average small business owner. Also, this survey defined "small" as having 500 employees or less which is fairly liberal and certainly not what most Americans think of as a small business. I believe this is incorrect:

I believe its $258,400.

"According to the survey, the national average salary for the CEO/Partner/Owner job function is $258,400"

I also believe Obama's thresdhold is $250k/$200k (Family/Single) An important note also is that 98.1% percent of small-business filers have income too low to be subject to either of the top two tax rates. Since the floor of these is below $250,000, then 98.1% of small business filers will not see any increase with Obamas plan.

http://www.cbpp.org/8-29-08tax.htm ---Incorrect Definition of Small Business--- The definition of "small business" used for that survey is actually too narrow. The small business administration uses various factors, including revenues, for determining what a "small business" is and these factors vary by industry. A small business is an concern that is organized for profit, with a place of business in the United States, and which operates primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor. Further, the concern cannot be dominant in its field, on a national basis. Finally, the concern must meet the numerical small business size standard for its industry. SBA has established a size standard for most industries in the U.S. economy. The most common size standards are as follow: 500 employees for most manufacturing and mining industries

100 employees for all wholesale trade industries

$7.0 million for most retail and service industries

$33.5 million for most general & heavy construction industries

$14.0 million for all special trade contractors

$0.75 million for most agricultural industries About one-fourth of industries have a size standard that is different from these levels. They vary from $0.75 million to $33.5 million for size standards based on average annual revenues and from 100 to 1500 employees for size standards based on number of employees. Several SBA programs have either alternative or unique size standards, such as the Small Business Investment Company Program.