Keep Tax Rates Low

Date: August 05, 2010

NFIB advocates to keep tax rates low because of the many operational challenges small business owners face. Many small business owners struggle to keep a steady cash flow, which is needed to not only run their business, but also support their families. One in five small businesses has a continuing cash-flow problem, a common challenge among businesses of all sizes. Specifically, after-tax income is an especially important source of capital for small businesses. High tax rates mean less money that small business owners have to reinvest back into their business.

According to an NFIB National Small Business Poll, 75 percent of small businesses are structured as pass-through entities (S corporations, limited liability companies, sole proprietorships or partnerships) that must pay tax on their business income at the individual rate. Most small businesses do not pay the corporate tax.

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