NFIB New York Survey: Inflation, Taxes, and Uncertainty Dominate Concerns for Main Street

August 19, 2024

Study Conducted Every Four Years Measures 75 Critical Topics Among Small Business Owners

NFIB New York Survey: Inflation, Taxes, and Uncertainty Dominate Concerns for Main Street

FOR IMMEDIATE RELEASE ALBANY, NY (Aug. 19, 2024) – The National Federation of Independent Business (NFIB) released the 11th edition of its quadrennial report: Small Business Problems and Priorities. First published in 1982, this report is issued every four years by the NFIB Research Center. A national sample of 40,000 NFIB members was drawn with a separate sample of 1,500 drawn for New York to create state-specific rankings. “This data makes it clear for lawmakers: New York small business owners are overwhelmed with rising costs across the board and are uncertain about the future of their businesses,” said Ashley Ranslow, NFIB New York State Director. “Taxes, utilities, workers’ compensation, and Unemployment Insurance are all critical issues for New York’s small business owners – issues that are directly impacted by the decisions made in Albany. Small businesses have repeatedly pleaded for relief, but expensive government regulations and taxes are making it harder for Main Street to simply survive.” The ten most burdensome problems for small business owners in New York are: 1) “Cost of Health Insurance”, 2) “Cost of Supplies/Inventories”, 3) “State Taxes on Business Income”, 4) “Unreasonable Government Regulations”, 5) “Cost of Natural Gas, Propane, Gasoline, Diesel, Fuel Oil”, 6) “Uncertainty Over Economic Conditions”, 7) “Electricity Costs (rates)”, 8) “Federal Taxes on Business Income”, 9) “Uncertainty Over Government Actions”, and 10) “Locating Qualified Employees.” New York’s key findings include: All of New York’s top 10 most severe issues were also listed in the overall top 10 problems nationally.

The “Cost of Health Insurance” ranks as the most burdensome problem for small businesses in New York and nationally.

New York small business owners struggle more than the overall population with three state regulatory/cost-related problems.

“Workers’ Compensation” ranks 14th in New York versus 29th nationally; “Minimum Wage/’Living’ Wage” ranks 15^th in New York and 25^th nationally; “Unemployment Compensation” ranks 21^st in New York versus 35^th national.

National key findings include: Cost Pressures Fuel Small Business Concerns

Unchanged since 1986, the “Cost of Health Insurance” remains the number one chronic issue for small business owners.
The “Cost of Supplies/Inventories” moved up in importance from ranking 12^th in 2020 to its current second place ranking – a direct result of historic inflation over the last two years.
- The percentage of owners who find it a critical problem increased from 9% in 2020 to 20% in 2024.
The “Cost of Natural Gas, Propane, Gasoline, Diesel, Fuel Oil” is the 6^th most severe problem cited by small business owners. Nearly one-in-four report it as critical.
Similarly, “Electricity Costs (rates)” is a top issue for small business owners, ranking 10^th in 2024 and reported critical by 16%.
Increasing in importance from 2020, “Interest Rates,” topped the list by rising 43 positions from a rank of 56^th in 2020 to 13^th in 2024.

Two of the Top-10 Problems are Tax-Related

The most severely ranked tax problem is “Federal Taxes on Business Income.” It ranks 4^th, down one position from 2020. The Tax Cuts and Jobs Act benefited most small businesses, but many still find their federal tax burden a critical problem.
- A quarter of small business owners think it is a critical problem, five points higher than four years ago.
- If Congress lets the Small Business Deduction expire at the end of 2025, it will result in a massive tax hike on small businesses and will likely exacerbate the federal tax issue.
“State Taxes on Business Income,” ranks as the second most severe tax issue. Twenty-two percent report it as critical, up from 19% four years ago.

Uncertainty Dominates Top-5 Small Business Concerns

“Uncertainty over Economic Conditions” and “Uncertainty over Government Actions” both moved up in importance from 2020.
Small business owners rank “Uncertainty over Economic Conditions” as the 3^rd most severe problem facing their business up from its ranking of 9^th in 2020.
- Twenty-two percent of small business owners report it as critical.
“Uncertainty over Government Actions” ranks 8th and is critical for 23%.
“Locating Qualified Employees” ranks 5^th and is critical for 28%.

“For the last four years, small business owners have struggled with historic inflation, tax pressures at all levels of government, and uncertainty of what’s going to happen next,” said Holly Wade, Executive Director of the NFIB Research Center. “This survey helps the public understand the issues affecting the small business sector. Small businesses employ nearly half of the private sector workforce, and this publication makes clear where lawmakers should focus their attention to strengthen Main Street and every community in which they operate. Despite the headwinds and economic challenges, small business owners are working hard to create new jobs and grow their businesses, but the threat of rising costs, taxes, and uncertainty gives Main Street pause.” The purpose of this publication is to offer a better understanding of which issues are most critical and of least importance for small business owners. This report will help state and federal lawmakers prioritize pro-small business legislation in the years ahead. The findings of this publication are based on the responses of 2,873 NFIB small business owners/members to a mail survey conducted from February through mid-April of 2024. Owners evaluated 75 potential business problems individually and assessed their severity on a scale of “1” for a “Critical Problem” to “7” for “Not a Problem.” An average for each problem was calculated and served as the basis for ranking or rank-ordering problems. To download NFIB’s 2024 Small Business Problems and Priorities report, please click here.

###

For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.

Topics:

Uncategorized

State:

New York

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More