A major concern of the majority of survey respondents was payroll taxes. 76 percent felt that an increase in the payroll tax will cause consumers to cut back on spending.
San Francisco, CA (PRWEB) December 07, 2012
The results of a survey done by the Small Business Majority show that small businesses owners are increasingly worried about higher taxes, but not for themselves. Instead, this survey is showing that small business owners are concerned about higher taxes for consumers.
The Small Business Majority is a lobbying group started by small business owners to promote small business growth and a stronger economy through government policy makers. This latest survey showed that small business owners are most concerned with the loss of tax breaks in the form of business deductions. They are also equally worried about the possibility of a 2 percent increase in payroll taxes that will take effect if the U.S. falls off the fiscal cliff at the end of 2012. They fear that the increased taxes for consumers will lead to a decrease in spending and a corresponding decrease in small business revenue.
Based on survey results, small business owners are surprisingly not focused on the highly publicized increase in taxes for individuals earning over $200,000 and households with earnings in excess of $250,000. Though Republicans have predicted that this increase will most affect small business owners, causing them to cut back on spending and hiring, the survey shows that small business owners are not concerned with the potential tax hikes to themselves.
The survey was conducted from Sept. 27 to Oct. 12 and consisted of 500 small business owners nationwide.
The survey was released just as Congress reconvened and began discussions regarding legislation that will help the U.S. avoid the fiscal cliff. Republicans and Democrats are sharply divided regarding the possible tax increases for the wealthiest Americans. The House of Representatives is currently controlled by Republicans, who favor tax cuts for the wealthy. However, President Obama, a Democrat, has promised to veto any bill that provides upper income tax payers with tax cuts.
The same survey conducted in September had 52 percent of small business owners agreeing that raising taxes on the wealthy would be necessary to help reduce the federal budget deficit.
A major concern of the majority of survey respondents was payroll taxes. 76 percent felt that an increase in the payroll tax will cause consumers to cut back on spending. If this payroll tax increase happens, small business owners expect a drop in both sales and revenues.
Small business owners also showed a concern regarding proposed budget cuts that would become effective if the full force of the fiscal cliff become reality. The major areas of concern were with infrastructure, education, and health care in the U.S., where 57 percent of respondents said that cuts in these areas would be more damaging to the recovering economy than increasing taxes on the wealthy.
About Sunovis Financial
Every small business is important to local communities and even more important in rebuilding the American economy. Today more than ever, small businesses need capital and assistance to thrive, and that is what Sunovis is focused on. The company specializes in SBA loans and quick short-term micro loans for businesses.