C-corporations, what most of us think of as “corporations,” are no longer responsible for most business income. Instead it is earned by what are know as pass through businesses. That is businesses like proprietorships, S-corps, and partnerships where the businesses income passes through to the owners of the business and is reported as personal income. And according to the Tax Foundation it is also the case that:

…54.8 percent of all business employment (employment excluding non-profits and governments) is pass-through business employment. This represents approximately 66.6 million workers and sole proprietors. C corporations comprise the remaining 45 percent, or 54.9 million workers.

The take away point is that increases in the personal income tax rate, like was experienced this year in the US,  is not just a tax on wealthy individuals. It is a tax on those private businesses that are employing more people in this country than any others.