text: Also as a tax professional that recommends these techniques to clients, these techniques do result in lower taxes than the average employee would pay on the same income.  However, it is apples and oranges - employees and small business owners are not the same given different risk profiles.  
  
  However, while trying to go after the worst of the "bad apples", the changes will impact most small business owners, not just the 1%.  Most of these small business owners are middle class.  The changes will result in their personal taxes increasing and to a level that is typically HIGHER than the average employee (based on the same income level).  Further, these rules will discourage savings in a company (for both expansion and to "weather" the next downturn) and are overly punitive to inter-generational transfer of businesses (substantially increases the tax cost if you were to transfer a business to your kids versus selling it to a third party).  These rules will hurt small businesses!