There is a lot of regulatory uncertainty in Washington these days for a number of industries, and among them is small business. This, in turn, may be leading to difficulties for these companies in their efforts to grow, and as such experts are now calling for definitive reform of the small business tax code.
One of the things that many independent business observers say is quite burdensome to these companies and which may be significant hindrances to their abilities to grow and increase hiring is the uncertainty currently swirling with relation to their tax liabilities going forward, and as such, lawmakers may need to take decisive action in the near future to clarify these issues, according to a report from U.S. Rep. Sam Graves on the Capitol Hill news site Politico. While the economy is recovering, it is doing so slowly, and that, too weighs on small business owners, but moreover, it creates a drag on itself, because the economy could improve more quickly if hiring were to pick up and cut into the still-high unemployment rate observed nationwide.
It may be particularly critical not only to get the political hurdles out of the way when dealing with small business, but also to make the rules related to how they must pay taxes easier to understand, the report said. On top of owners having to keep all aspects of their companies, also keeping in mind all changes to tax codes affecting them may be quite difficult.
"On top of the confusion around the tax code's complexity are constant changes to the law," Rep. Graves wrote."Too often, tax provisions are being extended for one year, months at a time, or even retroactively. This tax uncertainty, coupled with new regulations and a weak economy, has made it difficult for small firms to plan or grow their companies."
When dealing with tax costs and other issues, many owners may also want to consider the ways in which their small business insurance needs will affect their companies as well. For instance, with workers compensation insurance costs generally on the rise, and other considerations including general liability insurance needing to be accounted for as well, adding in the worries related to making sure all tax requirements are being met is not always easy, but is vital to keeping such a business afloat.