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Jodi Beggs

Economists on the Tax Treatment of Small Business...

By January 8, 2013

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We hear a lot in the media about how small businesses are good for the economy...but are they good enough compared to larger businesses to warrant special tax treatment? A sample of prominent economists suggests that the consensus is "no.". Some highlights:

"Targeted sectoral subsidies almost always a special interest boondoggle. And why does small business helps average citizen more than large?" --David Autor, MIT

"This could well be true, but I don't think we know. Meanwhile, favoring small businesses for job creation seems to be doubly misguided." --Pete Klenow, Stanford

"Maybe I am missing something but I see no particular reason why this sector should be favored." --Richard Thaler, University of Chicago

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