Earlier this week Apple CEO Tim Cook appeared before a Senate Subcommittee to discuss Apple’s tax practices. As Cook asserted, “We pay all the taxes we owe — every single dollar.”
The problem isn’t just that Apple and other companies keep money offshore, it’s also that our tax code is too complex. Big businesses, like Apple, have a dedicated, full-time staff of tax attorneys and accountants on hand to help figure out how to pay their taxes by the current tax code.
Most small businesses don’t have that luxury or the option to keep their earnings offshore since they are based solely here in the U.S. Ninety-one percent (91) of NFIB members hire a tax professional each year to just to file their income taxes. While this is great for all the tax professionals out there, it doesn’t take away from the fact that our system is too complex and siphons off much-needed resources that the small business owner could reinvest into their business.
In a recent study conducted by NFIB, 85% of NFIB members think Congress should fundamentally revise the federal tax code in 2013. High tax rates and the complexity of the current tax code are persistent problems for small business owners . Seventy-one (71) percent of NFIB members agree that any tax overhaul should result in lowering the tax burden.
Small businesses are a major source of economic growth and job creation , but small businesses are still struggling to recover from the recession .A less complicated tax code would reduce the cost of doing business and create a stronger business environment supporting the overall economy.