The argument that small business owners should be able to incorporate and gain tax advantages appears to rest, at least in part, on the notion that they assume considerable risk by starting their business. I think I'd buy this and therefore would agree that they ought to gain some tax advantage as a result. This does not necessarily mean that incorporation is the fairest way to do so. Seems to me that some middle ground might be appropriate. Yes, I know that "mushy middle" solutions tend to be shot down in flames. Thing is that there are occasions where they are in fact the best solution. This may b one of them.