Contact:
Molly Brogan
202-552-2904
press@nsba.biz

Washington, D.C. – National Small Business Association today announced new data on the small-business tax burden. The new data—part of the 2008 NSBA Survey of Small and Mid-Sized Business to be released April 16—shows that reducing the tax burden is the number one issue for small-business owners this election season.

“With a number of key small-business tax incentives set to expire in 2011, and a lagging economy, the small-business community is looking for any and every way they can ensure their continued growth—including easing their tax burden,” stated NSBA President Todd McCracken.

Perhaps the most worrisome tax increase slotted for 2011 is the estate tax, which will come back to pre-2001 levels of a mere $1 million exemption and an increased maximum rate of 55 percent. To address this, NSBA has embraced broad estate tax reform that would enable 90 percent of small and family-run businesses to escape the punitive and oftentimes devastating burden of the estate tax.

Complexity of the tax code continues to be a huge burden for small-business owners, according to the NSBA survey. Sixty-one percent employ fewer than 5 employees—few, if any, of whom is a tax attorney—forcing small businesses to pay 67 percent more for tax compliance than large businesses.

Adding to this burden, pressure from Congress and the IRS to narrow the tax gap has led to a 150 percent increase in IRS audits on small corporations. Though not nearly the full-fledged assault expected—partly due to the NSBA tax gap initiative (preventirsabuse.org) launched last year—plans to increase enforcement on small business are underway.

“Our survey found small business’ projected growth for the coming year, March 2008 to February 2009, is at its lowest point since 1993,” commented McCracken. “Increased audits and pressure on small business will further stymie the small-business community and harm the overall U.S. economy which is dependent on small-business job creation.”

Complete results of the 2008 NSBA Survey of Small and Mid-Sized Business will be available April 16. NSBA will host a media conference call on Wednesday, April 16 at 9:30 a.m. with NSBA President Todd McCracken, Public Opinion Strategies Partner Glen Bolger, and various small-business owners. To RSVP for the conference call, or to set up a private interview (schedule permitting), please contact Molly Brogan at press@nsba.biz or (202)552-2904.

Since 1937, NSBA has advocated on behalf of America’s entrepreneurs. Reaching more than 150,000 small businesses, NSBA is proud to be the first national small-business advocacy organization in the United States. To find out more about the importance of the small-business community, please visit NSBA’s Small Business: 70 Million Strong…And Voting campaign at www.nsba.biz/vote.

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