Majority of small businesses say that administrative burdens of federal taxes are actually a bigger problem than the financial cost, according to the National Small Business Association’s (NSBA) 2017 Small Business Taxation Survey.
The survey also found that one-in-three small businesses report spending more than 80 hours—two full work weeks—each year on federal taxes.
The survey was conducted online from March 8 - March 30 including 950 small-business owners.
The most broadly-supported tax reform is one that would reduce taxes and deductions for both corporations and individuals.
The majority of small businesses (83%) are pass-through entities and therefore file business taxes at the individual tax level.
Since most small businesses do not export or import, 67% said that a border-adjusted tax system would have no direct impact on their business.
“The number-one tax related concern of small businesses today is the possible elimination of deductions and credits without an offsetting reduction in tax rates,” NSBA Chair Pedro Alfonso of Dynamic Concepts, Inc. in Washington, D.C. said.
“The need for broad tax reform—and not just a tinkering here and there—is a real need for millions of American small businesses.”
NSBA President and CEO Todd McCracken said, that the overwhelming majority of small businesses believe Congressional failures—partisanship and a lack of effort—are the biggest challenge facing reform.
One-third of respondents do not believe tax reform will ever be enacted.