Small business owners say corporate tax loopholes give the nation’s biggest companies an unfair business advantage.
A survey of its members, the American Sustainable Business Council, Main Street Alliance and the Small Business Majority reports that small business owners favor increasing taxes on millionaire incomes, letting high-end tax cuts expire and closing the carried-interest loophole that gives big tax breaks to hedge fund managers.
“Small businesses are the backbone of the economy, yet they feel the playing field is titled in big businesses’ favor and small firms are at a disadvantage when it comes to taxes and corporate loopholes,” said John Arensmeyer, founder and CEO of the Small Business Majority. “Our economy needs to work for everyone. Policymakers need to listen to small businesses and level the economic playing field. If they do, we will all benefit.”
Key findings from the survey, which asked small business owners of their opinion of the tax law as it applies to multinational corporations:
– Nine out of 10 small business owners believe big corporations use loopholes to avoid taxes that small businesses have to pay. 92 percent say big corporations’ use of such loopholes is a problem, while three-quarters ay that small businesses are harmed by the practice.
– Nine out of 10 small business owners say that U.S. multinational corporations’ use of accounting loopholes to shift their U.S. profits to offshore subsidiaries to avoid taxes is a problem, and 55 percent say it is a very serious problem.
– Small business owners want to eliminate the carried interest loophole that gives hedge fund managers a big break on their taxes. 81 percent favor hedge fund managers paying taxes at the ordinary income tax rate, which currently tops out at 35 percent, rather than the 15 percent capital gains rate they pay now.