Today's Date: May 20, 2024
After Launching Massive Camp Giveaway for NYC Families Affected by "Summer Rising" Crisis, Brains & Motion Education (BAM!)   •   Dillard’s, Inc. Announces $0.25 Cash Dividend   •   Rockwell Institute Celebrates Highest Real Estate Exam Pass Rates for First-Time Test Takers in the State of Washington   •   Archer Aviation Partners With Etihad Aviation Training For eVTOL Pilot Training Operations Based In Abu Dhabi   •   Statement by the Prime Minister on Tamil Genocide Remembrance Day   •   SUNRATE joins Mastercard's Priceless Planet Coalition   •   Avangrid to Be Acquired by Iberdrola   •   XCMG Machinery Unveils Groundbreaking ESG Report, Marking a Milestone in Sustainable Business Development   •   HERImpact: Entrepreneurship for Impact Program Kicks Off in Chicago, Empowering Women Entrepreneurs   •   Historic Inaugural Class Graduates from OSU College of Osteopathic Medicine at the Cherokee Nation   •   Federal, provincial and territorial ministers gather to support culture and heritage at annual meeting   •   Xylem Inc. Declares Second Quarter Dividend of 36 Cents per Share   •   Feminine Hygiene Products Market size is set to grow by USD 14.44 bn from 2024-2028, increasing in aggressive marketing by vendo   •   Upneeq® Wins 2024 Shape Skin Award, “Best for Lift”, in the Professional Treatment Category   •   Red Door Community Raises more than $300,000 at Their Annual Luncheon Celebrating Women Working and Living with Cancer   •   Historic Bellevue House reopens   •   Sacred Heart Celebrates 125th Anniversary   •   Angels Helpers NYC 2024 Charity Gala Raises Funds for Harlem School of the Arts, Highbridge Voices   •   Energy Vault Holdings, Inc. Announces Inducement Grants Under NYSE Listing Rule 303A.08   •   The AZEK Company Receives NYSE Notice Regarding Filing of Form 10-Q for the Fiscal Quarter Ended March 31, 2024
Bookmark and Share

Easing Small Business Tax Burden Would Spur Jobs

For Immediate Release

May 07, 2009

Easing Small Business Tax Burden Would Spur Jobs


WASHINGTON, D.C. --Entrepreneurs testified before Congress today that streamlining the complex tax code could save small businesses billions of dollars, allowing them to expand their enterprises and hire more workers. In a hearing before the House Committee on Small Business' Subcommittee on Finance and Tax, small business owners said that the increasing complexity of the tax code was hindering small firms that are already struggling with unprecedented economic pressures.


"As a small business owner myself, I understand how difficult it can be to start and run your own business," said Subcommittee Chairman Kurt Schrader (D-OR). "Unlike big companies, small businesses don't have an army of tax attorneys and accountants to navigate a tax code that has grown so complex that it is a stumbling block for local merchants."


A 2005 study estimated individuals and businesses spent an estimated 6 billion hours and $265 billion dollars complying with their tax obligations, with compliance costs predicted to grow to $482.7 billion by 2015. As more Americans turn to entrepreneurship to start a new career or to boost their incomes, the 3.7 million word tax code is especially daunting for small businesses and home-based enterprises that operate on thin profit margins.


"The current home office deduction requirements are so confusing that many home-based entrepreneurs opt not to take advantage of it because they fear being audited if they make a mistake," Schrader said. "Small business owners need a simple way to take advantage of these incentives that can help start-ups and established businesses alike."


Schrader partnered with Republican Congressman John McHugh (R-NY) to introduce H.R. 1509, the Home Office Deduction Simplification Act, bipartisan legislation offering small business owners the ability to claim a standard deduction for home office expenses instead of utilizing the current, more complex formula. The simple home office deduction would benefit millions of home-based business owners, who are estimated to comprise 53% of all small businesses.


"Small businesses make up 98% of the companies in Oregon, just as they do in many communities across the country, and they are critical to our economic recovery," Schrader said. "By making it a little easier for small business owners to spend more of their time creating jobs, we can help them turn this economy around."


Witnesses told lawmakers that many tax laws are badly out of date. They cited cell phones as a prime example of an indispensable business tool that is still subject to antiquated tax treatment written decades ago when cell phones were a luxury item. Entrepreneurs also noted that the alternative minimum tax (AMT), which now ensnares 75% of all middle class small business owners earning less than $100,000 per year, as another item woefully out of date. They urged Congress to limit the AMT's reach and simplify the complex capital gains tax process to help small businesses reduce filing errors.


"In order to promote enterprise and reward hard work, our tax laws should be simple, straightforward and fair," Schrader said. "At a time when we need our entrepreneurs' ingenuity to lift us out of our economic slump, tax policies should help small businesses meet their obligations, not burden them with unnecessary layers of complexity."


# # #


Click here for video of the hearing.


Back to top
| Back to home page

White House Live Stream
alsharpton Rev. Al Sharpton
9 to 11 am EST
jjackson Rev. Jesse Jackson
10 to noon CST


Sounds Make the News ®
Atlanta - WAOK-Urban
Berkley / San Francisco - KPFA-Progressive
Chicago - WVON-Urban
KJLH - Urban
Los Angeles - KJLH - Urban
WKDM-Mandarin Chinese
New York - WKDM-Mandarin Chinese
New York - WADO-Spanish
WBAI - Progressive
New York - WBAI - Progressive
Washington - WOL-Urban

Listen to United Natiosns News