04/11/2008
Small business owners continue to look for simpler tax code
CONTACT: Mike Diegel, 202-314-2004
WASHINGTON, D.C.--All or part of the following statement may be attributed to Todd Stottlemyer, president and CEO of the National Federation of Independent Business, the nation's leading small business association:
"As Americans rush to beat the April 15 tax deadline, many of them are thinking, 'Why does this have to be so hard?' Small business owners in particular are looking for relief from an unnecessarily complex and confusing tax code. Rather than wait for Congress to consider comprehensive tax reform, there's one change legislators can make now that would both simplify the code and help the economy at the same time.
"Home-based businesses, one of the fastest-growing segments of the economy, incur expenses that would be easily deductible if only the businesses were not located in a home. Many business owners don't take legitimate tax deductions because of the complicated recordkeeping now required by the IRS to qualify for a home-office deduction. It's a barrier to many who would qualify, but don't have the time or staff to do the paperwork.
"Congress should permit a standard deduction for home-based businesses. Like the 1040 standard deduction, the deduction would be optional. Owners could choose to continue to deduct the depreciated amount plus operation costs, as they are currently allowed to do, or they could choose the new standard deduction.
"This proposal will help many of the smallest businesses to claim the deduction, reducing the burden of a process that now costs significant time and money that could be devoted to actually operating the business. In addition, in today's sagging economy, with more and more job layoffs being announced, many workers will look to start their own businesses. A standard home-office deduction would be a major boost for these entrepreneurs, who in turn could contribute to our economic well-being."
