Small businesses are spending way too much time and money on federal taxes, a new survey has found.
According to the National Small Business Association 2017 Small Business Taxation Survey (PDF), federal tax burden is one of the biggest challenges facing small businesses. The report finds the majority of small businesses (67 percent) are spending more than $1,000 each year on just the administration of federal taxes.
It also reveals one in three small businesses are spending more than 80 hours each year on federal taxes.
NSBA 2017 Small Business Taxation Survey
Administrative Burden Continues to be an Issue
There’s also evidence this administrative burden weighs heavy on small business owners.
According to the survey, 58 percent of small businesses find the administrative burden of handling taxes a bigger issue than the actual financial cost of federal taxes (38 percent).
Businesses Want Tax Reform
What’s worth noting is that for most small business owners, the possible elimination of deductions and credits without an offsetting reduction in tax rates is the top concern.
Not surprisingly, most surveyed small business owners support tax reform that would reduce taxes and deductions for both corporations and individuals.
“The need for broad tax reform — and not just a tinkering here and there — is a real need for millions of American small businesses,” said NSBA Chair Pedro Alfonso of Dynamic Concepts, Inc. in Washington, D.C.
The 2017 NSBA Small Business Taxation Survey was conducted online March 8-30 with responses from 950 small business owners.[“Source-smallbiztrends”]