Small Business Trends

Taxing small business is an important issue, especially in tough economic times. Small businesses hold the key to economic recovery so lower taxes for everyone would only speed the return to economic prosperity. As many small businesses know, lower taxes not only on business but on consumers would increase customer spending and benefit our businesses far more than increases in small business lending. It’s time we understand that lower taxes mean better business and a better economy for everyone.

News

What could a proposed tax overhaul mean to small business? In his State of the Union address, President Barrack Obama talked of lowering the corporate income tax for the first time in 25 years and also of eliminating loopholes that allow some businesses to pay almost no taxes while others get hit with a significantly larger share of the tax burden. While it would certainly be nice to see a lower corporate income tax, it’s uncertain what “loopholes” the President is talking about or what businesses would end up paying more. Accounting Today

Repealing 1099 is good news for small business. Senate leaders have pledged to get rid of a particularly onerous new reporting requirement which business leaders have complained for some time will be too time consuming to meet. The requirement to report the payment of certain goods and services to the IRS would be even harder on small businesses because of the bookkeeping required in keeping track. Accounting Today

Opinion

What does small business think of Obama? Reactions were mixed following the State of the Union address, but two small business advocacy groups applauded the President’s promise to eliminate the worrisome 1099 requirement that could potentially put greater strain on small business tax reporting. However, the groups also said Obama’s tax reduction proposal doesn’t go far enough and worries the President just doesn’t ‘get’ small business at all. WSJ

Tax policy takes “one step forward…two steps back.” While it applauded some aspects of Obama’s State of the Union address, particularly the President’s “pro-business rhetoric,” the Small Business & Entrepreneurship Council, a another leading small business advocacy group, had plenty negative to say about the administration’s speech as well. Do Washington’s current policies bode well for the future of small business? PR Newswire

The state of small business. If we had to choose just one word for the reaction we’re seeing across the Web from small business leaders for some of the points in President Obama’s speech touching on business issues, that word would have to be ‘skeptical.’ Here’s some more reaction from the small business community to the President’s state of the Union address. Fox Business 

Advice

Avoid an audit with the right tax preparer. Hiring the right help when preparing your small businesses taxes can be crucial to make sure you receive all the tax deductions you deserve. But it is also important to make sure that your small business tax return is prepared correctly to avoid triggering an audit of your return by the Internal Revenue Service, a move that could create added headaches and costs to your small business operations. TaxLawHome.com

Getting help from the IRS? You might not think of the Internal Revenue Service as your first stop for advice on how to fill out your small business taxes, but the organization’s Website certainly is just that. Check out some of the features that can make your small business tax preparation go more smoothly and help answer many of your most important questions about the tax return process. Westfair Online

Policy

U.S. not alone in needing tax reform. In fact, one Canadian academic argues the province of Manitoba, with a series of tax reforms including a small business tax elimination, just doesn’t go far enough to make the provine friendly to investment and business development. Government inability in many parts of the world to see how tax regimes negatively hurt their businesses and as a result their economies remains one of the great problems especially during tough economic times. Winnipeg Free Press

Bringin’ it all back home. Want to encourage businesses operating overseas to invest domestically? Then stop taxing foriegn earnings of companies made outside the United States afterthey’ve already been taxed by the overseas tax authorities in the countries where they do business. Punishing businesses fo bringing that revenue back just encouraging business not to invest here. National Review Online

Tips

Thoughts on hiring an accountant for bookkeeping and tax preparation. Need some help with bookkeeping and tax preparation for your small business? Why not look into hiring an accountant to simplify the process. Accountant Susan Crane clears up some misconceptions and makes some suggestions about the need to work with an accountant on your small business. Garner News