When it comes to the push and pull around taxes, many feel as though small businesses get left out. Small business owners are among the first to
tell you that they aren’t usually considered when lawmakers create tax policy. The 2015 Small Business Attitudes on Taxes survey was recently
released by Endurance International Group, and it takes a look at how small business owners feel about taxes and tax reform.
Small Business Owners Want Federal Tax Reform
According to the survey, 90 percent of small business owners think that the Federal tax code is in need of reform. Endurance reports that many of
those surveyed are less worried about state and local tax codes than they are about the federal tax code. Many states offer tax breaks to businesses. However, many small business owners worry that the burdens placed on them by federal levies have a stilting effect on their ability
to grow.
As a result of these concerns, 88 percent of small business owners surveyed feel that Congress and the White House should make tax reform a priority.
But Would Tax Reform Really Matter?
Even though an overwhelming majority of small business owners would like to see tax reform, the reality is that these same small business owners are
also concerned about the reality of tax reforms. While these business owners want to see tax reform, they also worry that if tax reform took
place, politicians still wouldn’t consider the impact on small business owners.
One of the issues is that large corporations are often the focus when politicians think about business taxes. Many of these corporations can afford lawyers that help them find loopholes, or they can afford to pay the taxes required of them. The situation might be different for small business owners, who often find themselves burdened with taxes and reporting requirements that sap resources that can be ill spared.
Rather than focusing on large corporations, the small business owners in the survey want Congress and the White House to make tax reform that prioritizes small business growth. They want to see changes that will allow them to expand, rather than burden them with extra administrative costs and headaches.
What About Internet Sales Tax?
This is another area of concern for many small business owners. Business owners often see improvements in revenue due to their ability to sell online across state lines. However, online sales tax requirements in some states make it difficult to handle these sales. The survey found that 63 percent of small business owners think that online sales tax is a real concern. On top of that 55 percent of small business owners believe that there shouldn’t be any sales tax for online purchases. There are some business owners (24 percent) that think that online sales tax is appropriate, but only in the state where the business is located. It’s a complicated issue and one that has been brought up lately due to the way Amazon has been implementing state sales tax collection. However, many small business owners lack the resources of Amazon, it can be difficult to keep up with differing state requirements.
It will be interesting going forward to see what becomes of the issue of tax reform, and how the situation proceeds with online sales tax.