We’ve hurdled the dreaded tax day!
NSBA’s recent survey on taxes found that, while the financial tax liability for small firms is a huge issue, the sheer complexity of the tax code is actually a more significant problem for America’s small businesses.
In fact, 59 percent of small-business owners picked administrative burdens as the biggest challenge concerning federal taxes, up from 53 percent just one year ago.
The weight these administrative burdens impose on small firms is staggering:
- One-in-three small-business owners spend more than 80 hours per year on federal taxes
- One-in-four small firms spend more than $10,000 per year on the administration alone of federal taxes
- 85 percent must pay an external accountant to handle their taxes
Beyond the vast time and financial burden the U.S. tax code imposes on small firms – it has wormed its way into our business operations on a daily basis: NSBA’s data shows that federal taxes have a significant to moderate impact on decision making for the majority of small businesses.
It is no wonder small firms are among the loudest champions of broad tax reform – but that reform must NOT come on the backs of America’s smallest firms in the form of corporate-only tax reform.
This is a big priority for the NSBA and its leadership is working with members of congress to remedy the situation.
Senate Finance Committee Chairman Orrin Hatch (R-Utah) and ranking member Ron Wyden (D-Ore.) have formed five bipartisan working groups to examine specific issues in tax reform as part of the process for developing a legislative proposal for a tax code overhaul.
Hatch and Wyden are soliciting ideas from interested members of the public and stakeholders on the committee’s ongoing tax reform efforts. The goal of this effort is for outside parties to provide additional input, data and information to the bipartisan working groups. Individuals and businesses interested in submitting comments should send an email to the bipartisan group or groups that relates to their area of interest.
Also, Hatch and House Ways and Means Chairman Paul Ryan (R-Wis.) have submitted a request to small-business leaders asking for ideas on how to cut the effective tax rate for businesses that file on the individual side of the tax code.
The chairmen have reached out to small-business owners and leaders, encouraging them to send in their comments and ideas by May 31, which is six days after the Senate Finance Committee working groups are supposed to submit their tax reform recommendations.
Click here to read more from NSBA’s 2015 Taxation Survey.
Click here to read more about Hatch & Wyden’s bipartisan team of co-chairs and contact info
Click here for the latest updates on NSBA’s tax policy advocacy.
Click here to write to your lawmakers and urge broad tax reform.