Small Businesses Give Tax Rates a Failing Grade
With April 18 a couple of months behind us, the last thing many business owners want to think about is taxes. But with that stressful time of year fresh in mind, this month's Surepayroll Small Business Scorecard asked small business owners to rate the state of taxes they faced in 2016.
For many, the year was a rollercoaster of high highs and low lows.
2016 Revenue: Movin' On Up
Overall, small business owners expressed an optimistic outlook for the U.S. small business economy, with single digit growth versus the same time last year. And, a majority of businesses (nearly 70%) benefited from an increase in revenue in 2016.
2016 Taxes: This Is Not a Love Story
But for small business, that's where the 2016 fairy tale ends. The majority also paid more in taxes in 2016 year over year (59.7%), and even more small business owners have a bleak view of the state of small business taxes in the U.S.
Most did not see enough of a revenue boost to make up for their increased tax bill, and more than three quarters feel they are taxed unfairly.
Where Do Small Businesses Go from Here?
Looking forward, many small businesses owners are hoping for policy change out of Washington, with particular focus on healthcare reform, overtime and wage regulations, and arbitration rules.
But Are Business Ready for This Change?
Washington may already be listening; the American Healthcare Act passed the House and a version will be up for a vote in the Senate once final numbers are received from the Congressional Budget Office. Beyond the question of what this new legislation will mean for small businesses, the bigger question is: are small businesses prepared to deal with the change?
Stay tuned for our next scorecard, which will explore how small businesses prepare for policy change, and the specific changes you are looking for from Washington in the next tax cycle.