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United States, which operates as a federal republic with a unique political system, is the world's third-largest economy by nominal GDP and the world's largest economy by purchasing power parity (PPP).

​ Compared to other developed countries, the U.​S. buy pug puppies san diego ​ economy is diversified and small businesses are prevalent.​ The U.​S.

​ small business share of GDP was nearly 36 percent in 2010, up from about 28 percent in 1970.​ According to data from the National Federation of Independent Business, businesses with fewer than 500 employees accounted for almost two-thirds of private sector jobs in 2010.

​ Despite the growth of small businesses, regulations and taxes can be costly for small businesses.​ The Complex Tax System in the U.

​S.​ is challenging for small businesses, which often have to hire outside help to understand the code.

​ Taxation in the U. buy puppy poodles in chicago ​S.​ is levied at various levels of government.​ Federal taxes make up the largest share of business tax payments, but state and local taxes also impact small businesses.

​ Federal taxes are levied on profits, income, payroll, investment, and estates.​ The most important federal taxes are the corporate income tax (CIT), the individual income tax, and the social security and Medicare taxes.​ The CIT is the biggest tax by revenue and accounts for almost a third of the federal government’s annual tax revenue.​ The CIT is composed of a corporate income tax and a personal income tax.

​ The corporate income tax is 35 percent, though the maximum corporate tax rate has been reduced to 21 percent.​ The personal income tax is levied on individual income, including salaries, wages, and other earned income, as well as dividends and capital gains.​ The social security and Medicare taxes are levied on benefits earned by employees, such as social security and Medicare wages, wages and salaries, and self-employment income.

​ State and local taxes also impact small businesses.​ The sales and use tax is the most important state tax, and it is levied on most purchases made by businesses.​ Other state taxes that can affect small businesses include business licenses, property taxes, and taxes on goods and services.​ Federal taxes are the main source of revenue for state and local governments, but state and local taxes also impact small businesses.​ State and local government finances are increasingly dependent on sales and use taxes.

​ Despite the challenges, small businesses remain an important part of the U.​S.​ economy.​ According to the National Federation of Independent Business, the net contribution of small businesses to GDP was almost $1.

​5 trillion in 2010. ​ The small business share of GDP has increased, and small businesses are driving innovation and growth in many sectors of the economy.​ This article will discuss the various taxes and regulations that impact small businesses in the U.​S.​ and offer advice on how to reduce the costs associated with running a small business.

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