Simplify and reduce the administrative investment and level of sophistication required for small businesses to comply with the U.S. tax code.
Simplify the federal tax code
What can the government do to save every small business owner considerable money plus make their work days more productive? The answer is simple. Simplify federal, state and payroll tax codes. The small business community views tax regulations as inefficient and largely unintelligible to the average small business owner. Large corporations can hire experts to work through the tedious maze of regulation changes. But small business owners typically can't afford skilled talent, can’t afford the time to research statutes, and can't afford the interest and penalties associated with making honest mistakes on their tax returns.
In 2007, according to a survey conducted by the National Federation of Independent Businesses, small business owners said that the single most important problem to the small business community was taxes.
What tax issues are problematic to small business owners?
Self-employment taxes
States that now tax businesses on gross receipts instead of net profits making it harder for younger firms to achieve cash flow breakeven and profitability
State initiatives to tax businesses that don’t maintain a physical presence in the state but conduct business by the Internet or through licensing
Inheritance taxes
The Alternative Minimum Tax
Corporate income tax
Increasingly more complex state sales tax regulations
Inventory and asset taxes
Capital gains taxes
Increasing complexity of ever-changing depreciation rules
Tax breaks provided to larger companies that are not practically available to small business owners
Deductibility of health insurance
Studies demonstrate that as tax rates increase, entrepreneurial activity decreases. Further, for every new tax affecting small businesses, owners must invest time and financial resources to learn and comply with new regulations. States that base business taxes on financial factors that are different from federal reporting standards make it even more challenging and costly for businesses to plan and operate.
Small business resources are finite. Our talent and available working capital should be directed to developing and selling profitable new products and services rather than completing complex tax forms.
