In debates leading up to the recent presidential election, Gov. Romney argued that raising taxes on those earning more than $250K/yr would put a crippling burden on small businesses, which are (presumably) treated like individuals by the IRS. Pres. Obama maintained that in order to fairly increase revenue, individuals earning >$250K/yr should pay more.
Both positions seem reasonable.
So to eliminate this dilemma, why can't it be easier for small business owners to register their businesses' incomes separate from their own, personal incomes/paychecks. If business finances and personal finances are kept strictly separate, different tax policies can be applied to each entity. This would clear a fair path for more revenue while also encouraging business owners to invest in their business.