Survey: Small and medium businesses owners are more worried about potential tax reform impact and ACA changes than they are about changes to NAFTA and DACA
NEW YORK, Oct. 11, 2017 /PRNewswire/ — Of the many proposed Trump administration policy changes, new tax reform changes would have the biggest impact on small and medium business (SMB) owners, according to a new survey released today by Business.com of SMB owners nationwide.
Tax reform would have a greater impact than changes to the Affordable Care Act (ACA), The North American Free Trade Agreement (NAFTA), or the Deferred Action for Childhood Arrivals (DACA), survey respondents said.
Tax reform was the number one concern for 52% of SMB owners, with 46% saying they are holding off on making any big decisions on their business while tax change uncertainty is the air. Changes to ACA are a major concern of 74% of respondents, with 33% of respondents ranking it first and 41% ranking it second.
Other key findings include:
- 49% of respondents see tax bracket change as their biggest tax reform concern, while 30% were more concerned with changes to deductions.
- More than 49% of SMB owners say the ACA has harmed their business, and 70% believe its repeal would have a positive impact on the bottom line.
- SMB owners are less concerned with changes or a repeal to DACA and NAFTA.
- Only 14% of respondents currently take advantage of the free trade tenets of NAFTA, and the majority of those respondents are in the manufacturing industry.
- Only 8% of respondents say DACA has a strong impact on their budgeting, but 25% of respondents did say their customer base would be affected if DACA was repealed.
Watching Washington Closely
“Tax policies really impact the bottom line for SMBs, so these business owners are watching Washington closely to see how these reforms play out and what the timeline for implementation might be,” says Doug Llewellyn, President and COO of Purch, which owns and operates the Business.com brand. “Businesses always find uncertainty challenging to navigate, especially tax uncertainly… [and they seek] information and access to experts to help them navigate the uncharted tax landscape.”
The Business.com survey ran September 25-29, 2017, with nearly 700 Business.com members across a variety of industries from around the country responding. For more information on the survey, please visit here.
Excerpts from the Survey:
When it comes to tax reform, nearly half of those surveyed said a change in tax bracket would have the biggest impact on them, with 31 percent saying a change in the deductions they could make on their tax returns would have the greatest effect.
Healthcare is the other policy issue affecting small businesses the most. One-third of those surveyed said the Affordable Care Act (ACA) is the current piece of legislation that has the greatest impact on their business.
For most, the effect has been a negative one. Nearly half of those surveyed said the ACA has harmed their business, with just 14 percent saying they have benefited from the healthcare changes that went into effect in 2010.
While a plan to overhaul healthcare has yet to come to fruition, 68 percent of those surveyed said repealing the ACA would have a positive impact on their business.
The vast majority of small businesses say the other two major policy pieces that the Trump administration has, or is considering changing – the North American Free Trade Agreement (NAFTA) and the Deferred Action for Childhood Arrivals (DACA) – aren’t keeping them up at night. Just 8 percent of small and medium-sized business owners said NAFTA has the largest influence on their business, with only 6 percent saying the same about DACA.
To learn more about Purch and its owned and operated brands, please visit www.purch.com.
Purch is a digital publishing and marketplace platform uniquely positioned at the intersection of content, commerce and customer. By combining in-depth product reviews, comparisons, and services with industry leading publisher technology, Purch creates a seamless connection between intent-based buyers and sellers. The company generates more than $1billion annually in facilitated commerce through its tech, shopping, lifestyle and SMB brands, including Tom’s Guide, Top Ten Reviews, ShopSavvy and Business.com. With more than 1,200 product categories, Purch is the #1source for buying advice for more than 100 million people each month.