A CNBC/SurveyMonkey Small Business Survey released this summer revealed that the top concern of small business owners is taxes. In fact, a quarter of these entrepreneurs shared that taxes are the most critical issue they currently face. Customer demand and cost of employee health care were next on the list (both of these issues were cited by 14 percent of the respondents).
This online poll was conducted April 17-28, 2017, and consisted of a national sample of 2,030 self-identified small business owners. 42 percent of these small business owners shared that they believe changes in tax policy will have a positive effect on their business. On the other hand, 33 percent believe it will have no effect. A small percentage feel that it will actually have a negative effect (24%).
So why are taxes so high on small business owners’ priority list? Attorney Andrew Sherman, a partner at Seyfarth Shaw LLP, explains, “Taxes have a direct impact on the bottom line and growth and the ability to compete globally”. Having little capital left over after taxes also affects the day-to-day operations of small businesses. Understandably, President Trump’s tax reform proposal has given many small business owners hope that some tax relief is in their future.
Trump’s proposed tax reform would create a simpler tax code consisting of four brackets, instead of seven. It would reduce tax rates, but allow for fewer deductions. He has also proposed reducing the tax rate paid by freelancers, sole proprietors, pass-through entities and unincorporated small businesses to 15 percent; this is the same rate he proposes reducing the corporate tax rate to. At the moment, all of these small businesses are taxed at (much) higher personal income-tax rates.
As they wait for changes to the tax code to move forward, small businesses are finding other ways to simplify their business operations. One of which is seeking alternative business funding options with providers like First American Merchant. For example, a business cash advance bad credit makes the entrepreneur with credit score problems breathe a sigh of relief. Even with the number of small businesses on the rise over the last few years, these hard-working individuals still have huge obstacles to overcome, from taxes to finding financing. One can only hope that the process of small business ownership will become a little easier and make room for growth.
In the words of Anthony Parent, founding partner of Parent and Parent LLP, a tax services attorney and CPA firm, “[Small-business owners] live incredibly modest lives. The tax code, as it is now, strangles them year after year.”
Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best business cash advance bad credit company, serving both traditional and high-risk Businesses.