Small Business Wants a New Tax Code
May 11, 1999
The National Federation of Independent Business has been leading a nationwide petition drive calling on Congress and the president to abolish the current tax code by a date certain and replace it with a fairer, simpler system that rewards work and savings.
The group protests that the present chaotic arrangement is particularly burdensome to small businesses.
- Firms with fewer than 20 employees spent more than $5,000 per worker in 1992 to comply with federal regulations.
- Paperwork alone -- primarily tax-related -- costs more than $2,000 per employee.
- Since 1981, there have been 15 major tax revisions, an average of a major tax bill every 14 months -- making it difficult for small businesses to plan, let alone have confidence their returns are accurate.
While the NFIB avoids promoting specific changes, it does propose general objectives.
- Lower taxes and foster growth by removing double or triple taxation on capital income.
- Keep it simple and fair through a single, low tax rate.
- Avoid the temptation to use the tax code for social engineering purposes.
- Avoid hidden levies -- such as a value-added tax -- while keeping taxes stable and making it more difficult to change the tax code in the future.
Source: Jack Faris (National Federation of Independent Business), "Time to Sunset the 'Code,'" Investor's Business Daily, May 11, 1999.
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