New NSBA Survey: Taxes Hamper Small-Business GrowthApril 8, 2015
Washington, D.C. – The National Small Business Association (NSBA) today released the 2015 Small Business Taxation Survey which shows growing administrative burdens imposed by the U.S. tax code. One-in-three small firms report spending in excess of 80 hours per year and more than one-quarter spend in $10,000 annually on the administration of federal taxes alone.
“It is no surprise, given Congress’ inability to effectively address tax legislation last year, that there was an increase in the administrative burden associated with federal taxes,” stated NSBA President and CEO Todd McCracken. “The tax code is irretrievably broken and now is the time for lawmakers to act.”
Underscoring administrative complexity, the overwhelming majority of small firms (85 percent) are forced to pay an external tax practitioner to handle their taxes. Beyond the time and money it takes to be compliant, the majority of small-business owners say that federal taxes hold significant influence over the decisions they make about their firms.
The survey shows that small businesses overwhelmingly support reducing both corporate and individual tax rates coupled with reducing deductions, and was the only broad tax reform proposal that received the majority of small businesses’ support. Corporate-only tax reform is a nonstarter for small firms, the majority of which are pass-through entities and therefore pay their business taxes at the individual income level.
“Congress has an opportunity to enact broad, meaningful tax reform that can greatly help America’s small businesses,” said NSBA Chair Timothy Reynolds, president of Tribute, Inc. in Hudson, Ohio. “I urge lawmakers to keep focused on the long term health of our economy and not get distracted by short term political positioning.”
The 2015 Small Business Taxation Survey was conducted on-line online March 13-24 among more than 675 small-business owners.
Please click here to download the full report.
Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.