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Long-term changes in entrepreneurial income

from Small Business Trends

The income that Americans report to the Internal Revenue Service (IRS) generally takes three broad forms: the wages and salaries that people get for working for a business or organization; investment income (capital gains, dividends and interest); and income from running a business of one’s own. Most of the income on which Americans pay income taxes takes the form of salary and wages. In 2011, the latest year for which data are available, 72.3 percent of the $8.4 trillion in reported income was of that form, data from the IRS Tax Stats reveals. more

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