Essay Undergraduate 353 words

Excise, Property, and Corporate Taxes on Small Businesses

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Abstract

This paper examines three potential taxes that could be levied on small business owners: an excise tax, a property sales tax, and an increase in the corporate tax. Drawing on assumptions about small business income sources — including goods production, sales, and property turnover — the paper evaluates how each tax option operates at either the production or income level. It also considers how tax burdens can be shifted to consumers and what these taxes mean for individual citizens. The analysis concludes with a brief reflection on the relationship between tax neutrality and overall citizen tax burden.

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What makes this paper effective

Clearly states its assumptions upfront — about income sources, property turnover, and business types — giving the argument a transparent logical foundation.
Moves efficiently from identifying three tax options to evaluating their practical impact, maintaining a tight focus throughout.
Shifts perspective in the final section from the business owner to the individual citizen, adding a distinct analytical layer without introducing unrelated content.

Key academic technique demonstrated

The paper demonstrates constrained policy analysis: it defines a set of assumptions, narrows a broad field of possible taxes down to three specific options, and evaluates each against a clear criterion (minimizing business impact and consumer burden). This approach shows how to structure a short analytical argument by bounding the problem before proposing solutions.

Structure breakdown

The paper has three sections. The first identifies and justifies three tax options — excise, property sales, and corporate — using assumptions about how small businesses earn income. The second evaluates which taxes best minimize burden on businesses by shifting costs to consumers. The third offers a personal citizen perspective on tax neutrality and overall burden preference. A single IRS citation grounds the discussion in formal tax classification.

Introduction: Selecting Three Taxes for Small Businesses

In order to settle on three taxes that could be levied on small business owners, several considerations need to be made. One concerns the sources of income. It is assumed that most small businesses deal with consumers as their main source of income, and either produce and sell goods or simply sell them. A tax could be applied either at the production level — such as a manufacturing or excise tax — or at the income level (IRS, 2008).

It is assumed that property owners pay taxes based on the value of their property. However, if we assume an environment of high property turnover, a sales tax on property could be considered in addition to a percentage-based property tax. Local shops could have a sales tax applied to them, but they could also — along with other small businesses — have a tax levied on their profits through an increase in the corporate tax or the addition of a corporate surtax.

Thus, the three taxes suggested are an excise tax, a property sales tax, and an increase in the corporate tax.

Minimizing Impact on Business and Property Owners

To minimize the impact on business and property owners, the tax should be one that can be applied at the consumer level. An excise tax raises the cost of goods, whereas a sales tax does the same thing but places the payment obligation directly on the consumer. A property sales tax would already be applied at the consumer level, making it a relatively less burdensome option for the business or property owner directly.

1 Locked Section · 75 words remaining

The Citizen's Perspective on Tax Burden · 75 words

"Citizen view on tax neutrality and overall burden"

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Key Concepts in This Paper

Excise Tax Property Sales Tax Corporate Tax Small Business Tax Burden Consumer Shifting Tax Neutrality Business Income Corporate Surtax Tax Policy