Dmytro Kharkov

Jeremy Horpedahl: Local shop likely pass-through entity not subject to corporate income tax

Jeremy Horpedahl: Local shop likely pass-through entity not subject to corporate income tax
Local shop not under corporate tax

Most local shops are organized as pass-through entities and therefore do not fall under corporate income tax obligations, according to Jeremy Horpedahl.

Horpedahl states that this business structure often exempts such shops from corporate income taxation in the U.S.

Horpedahl has previously highlighted that countries adopting Washington Consensus policies saw increased economic freedom and higher incomes, according to his published research. He also noted that U.S. average hourly compensation reached $38 per hour in 2024, compared to just 13 cents in 1894 after adjusting for inflation, as detailed in historical wage comparisons. These findings add context to his analysis of business structures and tax obligations.

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