The Small Business Tax Survey
- What's the biggest challenge facing small businesses?
According to a Gallup survey of small business owners: 1) Complying with government regulation - 22%; 2) Consumer confidence - 15%; 3) Lack of consumer demand - 12%; 4) Lack of credit availability - 10%; 5) Poor
leadership/government/president - 9%; 6) Cash flow - 7%; 7) New healthcare policy - 5%; 8) Competition from big business & overseas - 4%; 9) Lack of jobs - 4%.
- Actual costs vs. government estimates: 1) Actual small business costs are 13 to 17 times the government estimate; 2) That's 14% of U.S. national income; 3) Federal taxes + regulatory costs = 35% of national income; 4)
Actual costs are more than $1.75 trillion annually; 5) "Offline of Management and Budget" estimated costs at $51-$60 billion per year.
- Regulatory burden on business: 1) Regulation fees breakdown (figures shown are in billions of dollars) - OSHHS ($75), Tax Compliance ($160), Economic ($1.236), All federal regulations ($1.752 billion dollars); 2)
The annual direct burden on business is $970 billion ($161.000 per company, 19% of payroll expenditures, $8.000 per employee); 3) Regulations hit small business the hardest (>2 employees - $10.585, 20-499
employees - $7.454, 500+ employees - $7.755). Over 89% of all businesses in the United States are small businesses. Federal regulations costs small firms 36% more than larger firms. Cost per year of environmental
regulations is more than 4x higher in small firms than in large firms; 4) why are small business stuck footing the bill? The majority of regulatory costs are "Fixed Costs". The "Fixed Cost" model puts small businesses at an
inherent disadvantage by raising their prices before production has even started. A company with 5 employees pays the same as a company with 500 employees; 5) Yet, according to Professor Scott Shane: "the regulatory
burdens on U.S. small business are getting worse" - SmallBizTrends.
Brought to you by: ChamberOfCommerce.com - Your Business Online.
Sources: http://www.sba.gov; http://archive.sba.gov/advo/research/rs371tot.pdf; http://www.bats.org/negotium/022212.html; http://blogs.wsi.com/numbersguy/the-cost-of-doing-business-in-the-us-1031;