Search
 

The tax burden on small businesses

The average small business must devote 24 hours and pay more than $400 just to prepare and pay its federal taxes, not including the taxes themselves. "That cost is the result of the bewildering complexity in an IRS Code that has grown from 30,000 pages in 1986, the last time...

By William Atkinson | Updated on May 18, 2015

According to an April 14, 2015, press release, the National Federation of Independent Business (NFIB), the average small business must devote 24 hours and pay more than $400 just to prepare and pay its federal taxes, not including the taxes themselves. “That cost is the result of the bewildering complexity in an IRS Code that has grown from 30,000 pages in 1986, the last time it was reformed, to more than 70,000 pages today,” said Dan Danner, president and CEO of the NFIB. “High tax rates are a burden on small business, and the cost of compliance gets bigger every year as the tax code gets more complicated.”

Approximately 75 percent of NFIB’s members pay their business taxes as individual filers, and few of these businesses have in-house accountants. As a result, they have two options. One is to hire professionals, which is costly. The other is to spend endless hours themselves preparing their taxes. “The tax code hampers their competitiveness,” said Danner. “Every dollar that they must send to Washington is a dollar they’re not investing in their business. And every minute it takes to prepare their taxes is a minute they’re falling behind on something else more important.”

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.