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GOP's Small Businesses Memo to Obama: Simplify the Tax Code

GOP's Small Businesses Memo to Obama: Simplify the Tax Code

Congressman Sam Graves (R-Mo.) is hoping that tonight's State of the Union address will have several important changes that will alter the state of small businesses in the country.  In a post on the U.S. Chamber of Commerce Small Business Nation website, Graves, who serves as chairman of the House Small Business Committee, in particular echoed the sentiment of many small business owners when he first and foremost called for reduced government regulation and interaction in the affairs of small business.

Graves noted a recent U.S. Chamber of Commerce survey, in which 80 percent of small businesses said they would rather have less government interaction in their business than a financial "helping hand" to make his point.Additionally, 86 percent of respondents said they would prefer certainty to assistance provided by the government. 

The first way to achieve this, Graves said, comes in simplifying the tax code, which currently stands at 70,000 pages and 3.8 million words. Small businesses agree with this point as in a recent National Federation of Independent Businesses survey, small business owners reported that 40 percent of the top problems they face were tax-related.   

"Small-business owners spend too much money and time filling out government forms just to pay their taxes," said Graves. "The more time and resources spent on tax compliance, the less (time) an entrepreneur has to hire employees and grow."

Graves also highlighted the immense challenge which many small businesses face in complying with regulatory costs that are 36 percent higher than those of larger businesses. According to Graves, the average regulatory cost for small businesses stands at $10,585 per employee. A recent Gallup poll of small business owners showed that regulatory compliance was the most important challenge facing their businesses today.

"It would be music to every small-business owner's ears to hear the president call on his agencies to roll back costly regulations," said Graves.

Additionally, Graves believes that making the export process easier and opening new markets for small businesses who export would have a positive impact on the overall economy.

"These are just a few of the things small-business owners would like to hear addressed in the State of the Union speech," said Graves. "They don’t want to hear about more proposals, 'shovel-ready' projects or directives. They want to be set free — free to prosper without costly government interference. Small businesses are recognized as the engine of job creation in America — and allowing them every opportunity to compete fuels that engine."

Reach BusinessNewsDaily staff writer David Mielach at Dmielach@techmedianetwork.com. Follow him on Twitter @D_M89.