A new report from the National Federation of Independent Business finds that many small business owners are increasingly concerned about taxes, with a quarter labeling them a "critical" problem.
This marks a 5% increase since 2018, despite the Tax Cuts and Jobs Act reducing the corporate tax rate from 35% to 21%.
The potential expiration of the Small Business Deduction at the end of 2025 could exacerbate this issue, leading to a significant tax hike for about 90% of small businesses, the report’s authors noted.
Based on survey responses from nearly 2,900 small business owners, the report listed health care insurance costs as the top concern, with 41% of small business owners calling it a critical issue.
Inflation, the cost of supplies and inventory, energy, and “uncertainty” over economic conditions and government actions, were also top 10 concerns. Read more.