While the number of small businesses continues to shrink, much of it due to astronomical taxes and other fees, tax protections and loopholes for big corporations continue to go unchecked. Between 2008 through 2012, corporations have paid an average of 14 percent of profits in taxes. Even more shocking, one out of five of these profitable corporations paid zero federal taxes!
How Is This Possible?
There seem to be myriad ways profitable corporations escape taxes. Some utilize deductions based on prior-year losses, while nearly all hide assets in off-shore accounts. That’s right! According to Citizens for Tax Justice, most Fortune 500 companies have been linked to established, off-shore subsidiaries. Unfortunately, small businesses don’t seem to have the same tax shields (or be able to utilize the same accountants) as these giant corporations. Meaning, they are left to pay roughly 35 percent federal income tax on profits.
Are Small Businesses Really Threatened?
Yes!
According to regular surveys by the National Federation of Independent Businesses, since January small business owners have reported record confidence lows. Business owners considered 2016 an especially bad time to expand, citing low sales and an unstable political climate. This all equals fewer job opportunities and stagnant economies. However, despite the lack of growth, the IRS will still be knocking. It’s no wonder so many small business owners have had to seek out tax debt relief services.
Why Isn’t the Threat to Small Businesses Being Addressed?
In such a heated election year, you would think the decline of small businesses would be a major topic. Instead, it has mostly gone unnoticed. Honestly, it seems like no one has addressed this issue because no one knows how to fix it. If the government can’t collect taxes from corporations, they’ve got to collect them from somewhere. And that is how small business owners end up stuck with the bill.
Are You a Small Business Owner in Need of Tax Debt Relief?
Let the professionals at Direct Tax Relief ease the stress of dealing with the IRS. Our tax relief attorneys understand small businesses and the steps necessary to get you tax relief. 1-877-505-4829.
Sources:
- https://www.forbes.com/sites/markavallone/2016/03/02/u-s-small-business-confidence-at-2-year-low-3-tips-for-small-business-owners-facing-an-economic-slowdown/?sh=432106cc3259
- https://www.washingtonpost.com/news/on-small-business/wp/2016/04/18/gene-marks-why-small-businesses-are-not-feeling-so-sunny-these-days-just-do-the-math/
- https://www.inc.com/magazine/201505/leigh-buchanan/the-vanishing-startups-in-decline.html
- https://www.nfib.com/surveys/small-business-economic-trends/
