CompTIA Celebrates Small Business Week with Release of White Paper and Blog Series on How Capitol Hill Is Affecting IT Entrepreneurs
In conjunction with National Small Business Week, May 12-16, CompTIA published a new white paper, SMB IT Views on Tax Reform. The white paper finds consensus and support among SMB IT executives for simplifying the tax code and relieving compliance burdens in order to create incentives for growth and innovation.
In tandem with the white paper, CompTIA also published a blog series that spotlights several of the current legislative issues affecting small business members.
CompTIA conducted a quantitative tax study of those involved in tax decisions at SMBs and found that specific tax code provisions and policies, such as the high corporate tax rate and complex tax compliance processes, constrain potential growth and impede its ability to remain globally competitive.
In the CompTIA tax study, 49 percent of those polled indicated that total resources required to satisfy tax filing and compliance requirements had increased over the last year. And 58 percent of small businesses reported they spend more than 40 hours per year dealing with federal taxes, with 40 percent using more than 80 hours per year. Of those surveyed, 46 percent spend more than $5,000 each year on tax compliance. These compliance costs – both time and compliance dollars – are in addition to the actual tax dollars owed.
“Tax reform should be a mechanism to promote additional growth and opportunity for small businesses. For the SMB IT industry, its strength relies on its ability to grow, innovate and adjust to market trends. SMB IT companies across the nation are providing services to all major industries from healthcare to agriculture. The success of these industries relies on the IT industry and the services they provide,” said Elizabeth Hyman, vice president, public advocacy, CompTIA. “While the industry remains strong, we must continually identify ways to mitigate the burdens on these companies in an effort to increase their growth potential, which translates into sustaining and generating high-paying jobs.”
CompTIA lays out four key principles of tax reform:
CompTIA is the voice of the world’s information, communications and technology (ICT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information, visit CompTIA (http://www.comptia.org/home.aspx).