NSBA’s Tom Mathison Testifies: Tax Simplification a MustJuly 22, 2015
Washington, D.C. – National Small Business Association Trustee and Taxation Committee Chair Tom Mathison testified today before the Senate Committee on Small Business and Entrepreneurship on the need for broad, long-term tax reform as well as immediate steps to simplify the system. As Principal and co-founder of Mathison | Mathison Architects in Grand Rapids, Michigan, Mathison described the arduous process he endures on a weekly basis just to be compliant with the U.S. tax code.
“Unlike larger corporations which have in-house accountants, benefits coordinators, attorneys, personnel administrators, etc. at their disposal, small businesses often are at a loss to keep up with, implement, afford, or even understand the overwhelming regulatory and paperwork demands of the federal government and tax code,” Mathison said during his testimony.
In addition to calling for a broad reform of the overall tax code, Mathison pointed to near-term fixes that could greatly ease tax compliance, such as Committee Chairman Vitter’s recently-introduced legislation, the Small Business Tax Compliance Relief Act. He applauded the Chairman’s bill and welcomed some of the key changes it would make: allowing the self-employed to fully deduct the cost of their health insurance; increasing cash accounting thresholds; and requiring IRS to establish small-business review panels.
Mathison went on to quantify what a serious problem tax complexity has become, citing the NSBA 2015 Small Business Taxation Survey, which shows one-in-three small-business owners spend more than 80 hours per year dealing with federal taxes—two full work weeks.
“More than half of NSBA members have fewer than five employees, forcing most of us to hire outside help. At Mathison | Mathison Architects, that amounts to thousands of dollars each year, not to mention the significant time I personally spend each week on federal tax compliance. Time and money that would be better spent growing my firm and hiring new employees,” concluded Mathison.
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.