"It's no surprise, given Congress's inability to effectively address tax legislation last year, that there was an increase in the administrative burden associated with federal taxes," said Todd McCracken, president and CEO of the NSBA. "The tax code is irretrievably broken, and now is the time for lawmakers to act."

The NSBA report also noted that, "While the financial tax liability for small firms is a huge issue, the sheer complexity of the tax code is actually a more significant problem for America's small businesses. In ranking the most significant challenge to their business posed by federal taxes, 59 percent picked administrative burdens, up from 53 percent just one year ago." The report added: "Unfortunately, the current U.S. Tax Code is becoming an insurmountable hurdle for the growth of existing businesses and creation of new firms."

On April 15, Holly Wade, Research Director for NFIB, testifying before the Joint Economic Committee of the U.S. Congress, noted, "From mid-2008 through mid-2012, 'poor sales' was the number one problem for small businesses as consumer spending declined sharply. But now, 'taxes' is often the number one concern for small business owners, a problem that moderates the economic recovery in the small business sector." She added: "Five of the top 10 problems [reported by small businesses] are tax-related. They're concerned about the amount of taxes they have to pay, the cost of hiring tax professionals, and the time it takes them to comply with the law."

Congress itself weighed in on the tax burden that small businesses face. In an April 15 press release, Steve Chabot (R-OH), chair of the House Small Business Committee, noted, "America's 28 million small business owners, taxpayers themselves, repeatedly complain that the uncertainty of the tax code has made it difficult to plan or grow their companies. We've held hearings, met with trade associations, and, most importantly, we've talked with our constituents back home. The message we hear is always the same: We've got to make the tax code simpler, flatter, and fairer."

Rep. Chabot noted the importance of revising the tax code for small businesses in specific. "There is no doubt that we must reform our corporate tax structure," he said. "We have the highest corporate income rates in the world. However, as our committee has identified numerous times before, our small businesses are the backbone of our economy. They create over 60 percent of the new jobs and represent over 90 percent of all employees in the United States. Because so many of these enterprises file and pay their taxes on their individual returns, we cannot and must not ignore them as we move forward with any tax reform debate."

Testifying before the House Small Business Committee hearing on tax reform that same day, Scott Lipps, owner of Sleep Tite Mattress Factory and Showroom, noted, "The president's budget calls for a reduction on corporate tax rates in exchange for closing certain loopholes. So far, however, he has been unwilling to discuss changes on the individual side of the code, where most businesses file their taxes. To exclude small business from the reform would be unfair and also unwise."