© 2024 Connecticut Public

FCC Public Inspection Files:
WEDH · WEDN · WEDW · WEDY · WNPR
WPKT · WRLI-FM · WEDW-FM · Public Files Contact
ATSC 3.0 FAQ
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations
WNPR’s small business coverage elevates understanding of the challenges faced by small business, educates policy-makers, and highlights the vital role of small business to the state’s economy.

Small Businesses Call For Reform Of Tax Code

http://cptv.vo.llnwd.net/o2/ypmwebcontent/Chion/hj%20110414%20sb%20taxes.mp3

It can cost small businesses between $5,000 and $10,000 just to administer their tax returns each year. That’s the finding of a new survey, which calls for radical improvements to the tax code. WNPR’s Harriet Jones reports.

The National Small Business Association conducted a survey of its members on how much time and money it takes them to comply with the federal tax code.

“The tax code is incredibly complex”

Chair of the Association, Larry Nannis, is also a CPA. He says 87 percent of those businesses surveyed said they had to pay for outside help to have their tax return prepared, and a third were paying as much as ten thousand dollars in administrative costs. Those who do it themselves report it taking a week a year of business time to complete.

“Small business is the group that is most likely to be the best jobs creator. Anytime that you can put money toward growing your business, that’s a more productive use of the funds than an overhead or an administrative cost such as having to pay or having to spend the time to have your tax return prepared.”

Congress has been mulling a reform of the corporate tax code, but Nannis says this won’t help the vast majority of small businesses who pay tax as individuals.

“They’re talking about corporate tax reform and we think that they need to be talking about overall tax reform, because 80-plus percent of our members don’t file business taxes as a corporation.”

Meanwhile, payroll taxes are about to get even more complex. Starting in 2012, employers will have to report spending on healthcare on their employees’ W-2s.

For WNPR, I'm Harriet Jones.

Harriet Jones is Managing Editor for Connecticut Public Radio, overseeing the coverage of daily stories from our busy newsroom.

Stand up for civility

This news story is funded in large part by Connecticut Public’s Members — listeners, viewers, and readers like you who value fact-based journalism and trustworthy information.

We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. As a community-supported public media service, Connecticut Public has relied on donor support for more than 50 years.

Your donation today will allow us to continue this work on your behalf. Give today at any amount and join the 50,000 members who are building a better—and more civil—Connecticut to live, work, and play.

Related Content