Survey: Most Small Businesses Do Not Understand the New Tax Law

National Association for the Self-Employed conducted a member survey and found 83% did not understand the new tax law while 90% felt inadequately prepared

National Association for the Self-Employed
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As President Trump and congressional Republicans travel around the country touting the impact of the tax reform package enacted last year, the National Association for the Self-Employed (NASE), a leading advocate and resource for the self-employed and micro-businesses, released a new, national member survey gauging the impact the tax reform law is having on small business owners.     

“It is crystal clear from our survey that an overwhelming number of small business owners and self-employed Americans still don’t understand how to make this new tax law work for them,” said Keith Hall, President and CEO of NASE. “The tax reform package signed into law last year is based on Americans reinvesting savings back into their business operations and helping to spur overall economic growth. Small business owners must first have a full understanding of how this new tax law will impact their bottom line.”

The NASE survey was conducted online in the month leading-up to the recent April 17th tax filing deadline, with 389 respondents from across the country. An overview of the results from the survey include:

  • An overwhelming 83% did not have a complete understanding of the impact the new tax reform law would have on their business
  • Over 90% of respondents felt the government did not adequately prepare them for the new tax system.
  • Survey takers were split on if they expected to pay MORE or LESS in overall taxes in 2018.
  • Almost 60% of those who took the survey responded they felt their taxes would be more difficult to complete in 2018 because of the new tax law.
  • Over 90% indicated the government can still take additional measures to ease the tax burden.

The small business community is rapidly trying to educate themselves on how to make the new tax policies translate into savings and growth. However, additional IRS guidance is necessary and the government can take additional steps to effectively communicate the impact of these new laws on millions of small business owners in every city and state throughout the country,” Hall concluded.