Why do so many liberals mistakenly think small businesses are mom & pop stores etc with very low income?

Question

In the United States the Small Business Administration establishes small business size standards on an industry-by-industry basis, but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most nonmanufacturing businesses.

Answer 1

In fact some use a different standard.



They consider a "small business" anyone that has pass through on their taxes, which would mean any s-corp or LLC. So Chrysler Group, LLC yes the car manufacturer with $183 million profit would be considered a small business.



So when conservatives say that letting tax cuts expire on the top 2% would hurt small businesses, they are also referring to Chrysler!

Answer 2

Most people, conservative, liberal, and politically apathetic alike, have little understanding of what the modern picture looks like in new business ventures.



Unfortunately, economic politics is governed by the majority, and the majority thinks of economics on very simple (and largely imaginary) terms - "big businesses" are all Wal-Mart and are either evil or godlike, and "small businesses" are all that little bookstore on the corner.



People who actually make value judgments about businesses on an individual basis on factors other than raw size, who actually understand how a modern business gets on its feet, or, much less, who understand government's role in providing incentives and closing loopholes to guide the behavior of businesses, are incredibly rare and not nearly numerous enough to have an effect on elections.

Answer 3

Why do you think liberals believe this?



BTW taxes are not based upon gross receipts but net income (profit)



The Republicans were using the term for people who file pass through taxes. 1120S, 1065....



I thought it was the Republicans who want people to think that the eliminating the tax cut was going to hurt the mom and pop businesses. If the Republicans want to know specifically who they are talking about why don't they just come out and say it.

Answer 4

Actually that is the technical definition, but for TAXATION purposes, small businesses can be S-Corps, S Corporations, sole proprietorships or partnerships, including limited liability companies that put LLC instead of Inc. at the end of their names.



All are considered pass-through structures, in which company profits are passed directly to individual owners, who then pay taxes. Traditional corporations pay taxes on profits and pass along dividends to individuals, who pay taxes on the dividends.



It’s not the income that’s small, it’s not the number of employees that’s small, it’s just the total number of owners that’s small. In the case of S corporations, the total number of owners can be 100.



Businesses that fit this description for TAX purposes and therefore get small-business breaks include:



-Enterprise Products Partners, L.P., a pipeline company with 2009 revenues of $25 billion.



-Kohlberg Kravis Roberts & Co., a Wall Street firm with $445 million in revenue in 2009.



-Price Waterhouse Coopers, an accounting firm with $26 billion in revenue in 2009.



-Koch Industries, a conglomerate of partnerships with 70,000 employees.

-The Hillman Company, investment founded by billionaire philanthropist/industrialist Henry Hillman.

-Venn Strategies, Inc., whose chief operating officer is Brian Reardon, a former special assistant to former President George W. Bush.



-Ferrellgas, a propane and propane accessories business, with $2 billion in revenues in 2009 and 1 million customers.



-CoorsTek, a ceramics manufacturer founded by Adolph Coors, with 2009 revenue of $549 million.



-Dead River Co., with $500 million in revenue and 1,200 employees.



-McIlhenney Co., the Tabasco maker, with $250 million in revenue in 2007.



http://sbinformation.about.com/od/ownership1/a/SCorporation.htm

Answer 5

I don't. If you can't run a business and run it at a profit, admit you're in over your head, that you lack skills and fold the darn thing up. If you cannot compete and need help from the government, then perhaps you aren't as good with business as you would like to believe.

Answer 6

i don't be attentive to every physique who thinks that. yet mom and pa companies are a considerable tension in using the economic equipment in this u . s . alongside with smaller firms. And the proprietors/CEOs of those companies are normally no longer interior the "wealthy" type whilst it comprises paying taxes. $250,000 a year is a reasonably elite type in this u . s .- very few small corporation proprietors are in that type. yet whilst those companies thrive, it continually seems that the economic equipment does besides. And if we relied on in simple terms conglomerate firms to hire our voters, our unemployment fee could be someplace interior the 30% selection at minimum. we would be a 0.33 international u . s ..

Answer 7

so, mom & pop stores aren't small businesses? lol



I think that's what most pepole think of when they think of small businesses...



maybe that's now what they normally are, but I think it's a pretty common idea...



you asked this before, and I asked you if you think that most people think of a small business as being worth $7 million... I don't think most people do...



and really, I don't think most small businesses are worth that much, that's just the upper end...

Answer 8

You are wrong. Some small businesses have 50000 employees and 25 billion in revenues.

Answer 9

Small Businesses are defined by the number of owners not he number of employees.

Answer 10

My gay partner is mexican and he should get social security and i'm a felon who never worked but i need money too. We live in public housing and like Lady ga ga

Answer 11

And also includes construction giant Bectel .

Answer 12

Some never had a job in their lives .

Answer 13

Don't ask a liberal how the economy works, they think government creates wealth when in fact, they only spend money.

Answer 14

I don't think they think that.