Small Business Owners' Views on Big Business Taxes

A recent small business owners' survey report published by the American Sustainable Business Council, Main Street Alliance, and Small Business Majority (2012) concluded the following:

• Small business owners overwhelmingly believe big corporations use loopholes to avoid taxes that small businesses have to pay: A sweeping 90% believe this to be true; 92% say big corporations’ use of such loopholes is a problem.
• Nine out of 10 small business owners say U.S. multinational corporations using accounting loopholes to shift their U.S. profits to offshore subsidiaries to avoid taxes is a problem: 91% of respondents agreed it is a problem, with 55% saying it is a very serious problem.
• Majority of small business owners say their business is harmed when big corporations use loopholes to avoid taxes: Three-quarters of respondents agree that their small business is harmed when loopholes allow big corporations to avoid taxes. More than one-third say it harms their business a lot.
• Small business owners say big corporations are not paying their fair share of taxes: 67% believe big corporations pay less than their fair share of taxes. An even bigger majority, 73%, says multinational corporations pay less than their fair share.
• Small business owners say households making more than $1 million a year pay less than their fair share in taxes: 58% of owners say households whose annual income exceeds $1 million pay less than their fair share.
• Small business owners support a higher tax rate for individuals earning more than $1 million a year: 57% of respondents agree that individuals earning more than $1 million a year should pay a higher tax rate on the income over $1 million. Only one small business owner out of 500 polled reported their annual household income to be more than $1 million.
• Four out of five small business owners disapprove of the “carried interest” loophole that gives hedge fund managers a big break on their taxes: 81% of small business owners favor hedge fund managers paying taxes at the ordinary income tax rate, with a top bracket rate currently set at 35%, rather than the 15% capital gains rate—with 61% strongly supporting this change.
• A majority of small business owners believe Congress should let tax cuts expire on taxable household income exceeding $250,000 a year: 51% of respondents believe Congress should let tax cuts on taxable household income exceeding $250,000 a year expire (40% said they should be extended).
• Respondents in this scientific national survey were politically diverse, with a majority Republican or independent-leaning Republican: 50% identified as Republican (27%) or independent-leaning Republican (23%); 32% as Democrat (14%) or independent-leaning Democratic (18%); and 15% as independent.

Business interests in the US are clearly not defined homogenously. The emerging divide between small businesses and larger firms is becoming very real, at least in the minds of small business owners. Follow the link below to download the full report:

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Source: National Opinion Poll: Small Business Owners’ Views on Taxes and How to Level the Playing Field with Big Business (2012, February 6), American Sustainable Business Council, Main Street Alliance, & Small Business Majority.

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