Project to Explore the Impact of State and Local Taxes on Small Businesses Compared to Their Impact on Large Businesses

摘要

The purpose of this project was to determine whether state and local governments treat small firms differently from large firms. The hypothesis is that the tax burden on small firms is distributed regressively per dollar of sales. This project reviews the literature on relative tax burdens between large and small firms, explores the data availability and develops a methodology to examine the tax burden on two sample states - California and Massachusetts.