U.S. Sen. David Vitter (R-La.), Chairman of the Small Business & Entrepreneurship Committee, made the following statement as part of “Tax Day.”
“America’s small businesses share the same qualities that make our country great – courage, vision, and perseverance; yet, when you consider the overwhelming onslaught of federal regulations that weigh down our nation’s job creators, you may wonder how small businesses stay open at all,” said Vitter. “On this ‘Tax Day,’ I want to make sure my colleagues in Washington understand that the tax burden on small businesses is greater than the administrative portion or the financial cost. Federal taxes influence the decision-making process of small business owners, and that should be a bright red flashing warning sign for Washington. Reform needs to happen now, which is why I will introduce reform legislation that will allow small business owners to focus on running their businesses, instead of worrying about government interference.”
Vitter’s legislation would reduce the paperwork burden and compliance costs for small businesses and eliminate disincentives for growth. He plans to introduce the bill in the coming weeks. Earlier this month, Vitter held a Small Business Committee field hearing in Lafayette, La. to hear directly from job creators and examine the impact of tax regulations on small businesses. Click here for more information.
Top Five Tax Day Facts
1. Small businesses spend approximately 6 billion hours fulfilling their federal income tax obligations.
2. Over 2/3 of small businesses admit that federal taxes influence their day-to-day operations
3. 85% of small businesses hire an external accountant or tax practitioner to file their federal taxes
4. Nearly 50% of small businesses spend at least $5,000 annually to comply with federal taxes, and almost 30% spend more than $10,000.
5. 1 in 3 small businesses spend over 80 hours on tax compliance each year.